Gold Price forecast for the week of February 12, 2018, Technical Analysis

Gold markets initially tried to rally during the week, showing signs of bullishness yet again, but as we got into the market week, the sellers came back. The weekly candle is a very negative and suggests that we are going to continue grinding a little bit lower. · FX Empire

Christopher Lewis

Updated Fri, Feb 9, 2018, 10:01 PM

Gold markets have rolled over during the week, initially trying to break out above the $1350 level, but found that area to be far too resistive to continue. By doing so, we break down below the $1325 level, reaching down towards the $1300 level. I believe that the $1300 level is the next support level, but there’s probably even more support closer to the $1275 level. If you squint, it doesn’t take much to imagine an uptrend in channel. I believe that the market will eventually find buyers, but it may be a little bit lower. Gold has been grinding, and that’s the biggest thing you need to keep in mind. It hasn’t been exploding to the upside, so at this point I think that we would anticipate more of the same, a gentle grind to the upside.

With this in mind, I believe that the market should give us an opportunity to pick up a little bit of value here, with the patient trader being able to take advantage of what has been reliable price action. If we were to break down below the $1250 level, then we could drop pretty significantly. Until we do that, I look at it as a “buy the dips” type of mentality that remains, but I also recognize that low leverage is probably the best way to approach gold, as we have a lot of work to do to break out to a fresh, new high.