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Gold Price forecast for the week of January 22, 2018, Technical Analysis

Christopher Lewis
Updated
Gold one back and forth during the week, using $1325 level as support, and $1350 level as resistance. The neutral candle suggests to me that we may have a little bit of momentum building to do.

Gold markets went back and forth during the week, ultimately settling on a very neutral candle. We are at the top of a significant move to the upside, and starting to cross over in the overbought part of the stochastic oscillator. Because of this, I suspect that we may get a little bit of a pullback, perhaps down to the $1300 level again which was massive resistance. However, I do believe in the longer-term uptrend and I look at a pullback as a potential buying opportunity, especially if we get support at the $1300 level. Beyond there, there’s an uptrend line that holds the market up from the entirety of 2017, so I have no need or desire to sell this market. If we break above the $1350 level, that would send the market much higher.

Longer-term, I do believe in the gold markets, and I do believe that they go much higher. There is a bit of a negative correlation between gold and Bitcoin, so if that market starts to sell off again, you may see gold go higher. This makes sense, as Bitcoin is often used as a hedge to the dollar. I believe that this pullback is a nice buying opportunity, so be patient, and wait for some type of support underneath to go long. I believe that the $1400 level above is massive, and if we can break above there, the market will go much higher, perhaps in more of a buy-and-hold phase. Volatility is going to be constant.

Gold Prices Video 22.01.18

This article was originally posted on FX Empire

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