Gold Price Forecast February 5, 2018, Technical Analysis

Gold markets fell hard during the trading session on Friday, in reaction to the jobs number. However, the market looks as if it is trying to stabilize near the $1335 level, perhaps getting ready for a short-term bounce. There has been a massive amount of selling, but this is typical after the jobs number, as we get a bit of an overreaction. · FX Empire

Christopher Lewis

Updated Fri, Feb 2, 2018, 9:33 PM

Gold markets fell hard as the jobs number came out reasonably strong in America. If we can bounce above the $1337 level, the market is likely to go much higher. Otherwise, I would anticipate a breakdown to the $1330 level, and perhaps even lower than that to the $1325 level. Ultimately, the market looks very likely to see volatility, and we are reaching relatively high areas, but I think that any pullback at this point should be looked at as potential value, especially if you can buy in small quantities.

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Gold has been consolidating overall, and we have broken down a bit too far based upon recent action. I think that a reversion to the mean makes a lot of sense, so we will have to see what happens next, but I do believe that the buyers are coming back in. The fact that we sold off so hard and then just essentially sat there after the initial selling tells me that there is plenty of demand just below, and I think that the bounce makes significant sense as the US dollar has been in a downtrend for some time, and I don’t think that is going to change anytime soon. The market participants should continue to see volatility, said don’t feel the need to build a large position initially. If you can scale in with small bits and pieces as the move works in your favor, that’s the way to go.