Gold Price Forecast January 15, 2018, Technical Analysis

Gold markets broke out during the day on Friday, clearing the $1325 level. The market then pulled back to reset level, only to explode to the upside again. The US dollar is getting hammered, and that’s yet another reason that this market should go higher. · FX Empire

Christopher Lewis

Updated Fri, Jan 12, 2018, 6:37 PM

Gold markets initially broke out to the upside during the session on Friday, but then rolled over to test the $1325 level. That’s an area that should be supportive, and then we bounced to go even higher. I think that the market should continue to go towards the $1350 level, which has been important in the past. I think that every time we pull back, buyers look at dips as an opportunity to pick up gold “on the cheap.” The market participants are betting against the US dollar, which is getting pummeled against the Euro, Pound, and several other currencies around the world.

The was rather explosive, as futures traders jumped all over the yellow metal. The market should have plenty of support at the $1325 level. That is essentially the “floor” in the market, and it’s not until we break down below there that I would be concerned. If we did breakdown below there, then it’s likely that the $1300 level underneath is the next major support barrier. The market will continue to be very noisy, but given enough time I think that it’s likely that we will see value hunters come back every time we sell off. The explosive move towards the end of the day on Friday suggests that there is real volume and conviction, and that larger firms are starting to pick up gold as well. I believe that the US dollar weakness should continue, and therefore should continue to push precious metals overall to the upside.