Gold Price forecast for the week of February 19, 2018, Technical Analysis

Gold markets rallied significantly during the week, breaking above the $1350 level, an area that has been resistance in the past. There is a bit of noise just above, and at this point I think we are trying to do is build some type of basing pattern for a longer-term move. · FX Empire

Christopher Lewis

Updated Sat, Feb 17, 2018, 12:40 AM

Gold markets have rallied significantly during the week, crashing into the $1350 level. That’s an area that has the beginning of significant resistance going higher, perhaps as high as $1400. When I look at the longer-term time frames, the $1400 level should open the doors to a longer-term “buy-and-hold” scenario, and I think at that point we will probably go looking towards the $1800 level. It is because of this that I have been watching gold with great interest as of late, but I recognize that we have some work to do.

If we do pull back, and that is possible, I think that there be plenty of buyers near the $1325 level. Longer-term, I believe that we not only go to the $1800 level, but I think we go as high as $2000 beyond there. The market will be watching the bond markets in the niceties, as they have been selling off, leading to more weakness in the US dollar. By extension, this typically lifts the gold and silver markets, so I think the future is quite bright for precious metals. That’s not to say that we can break out immediately, I don’t think we will. I think that it will take a bit of momentum building to finally make that move, but once we do, look out. Otherwise, I don’t have any selling opportunities presenting themselves in front of me, so I am essentially a “buy only” trader when it comes to gold.