Gold Price Forecast February 19, 2018, Technical Analysis

Gold markets fell slightly during the trading session on Friday, reaching towards the $1350 level. That’s an area that should continue to attract a lot of attention as it has in the past, as the market could be entering a momentum building phase. · FX Empire

Christopher Lewis

Updated Fri, Feb 16, 2018, 11:26 PM

Gold markets have pulled back slightly during the trading session on Friday, reaching towards the $1350 level. That’s an area that is supportive on the short-term charts, but I think if we can break down below there, there’s still plenty of support underneath, especially near the $1335 level. Ultimately, I think that the market pulling back should offer value that a lot of traders will be looking to take advantage of, and therefore it’s likely that we will see these pullbacks as value. I like the idea of buying pullbacks as it offers an opportunity to pick up gold on the cheap, and I believe that the selloff of the US dollar should continue. I don’t like the idea of shorting the gold market, at least not until we break down below the $1300 level, which doesn’t look very likely to happen right now. I think that given enough time, the US bond markets will continue to sell off, and if that’s the case the US dollar itself will soften, providing a natural bounce for gold.

Longer-term, I believe that if we can break above the $1400 level, it’s likely that we will continue to go higher in more of a “buy-and-hold” scenario, and could go as high as $1800, perhaps even $2000 after that. I think that gold is going to have a good year in 2018, so at this point I look at jumping in and buying in little bits and pieces should be the best way to go as it can build a larger core position.