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Gold Forecast: Continues to See Buyers

By Christopher Lewis
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.
  • Well, another day, another massive gain for gold.
  • At this point in time, we aren't getting stretched and I am looking for pullbacks to occur.
  • Those pullbacks for me are going to be buying opportunities as I do not wish to get too cute here and I don't want to try to pick the top.

That'd be a great way to blow up your account. Ultimately, the way the market's moves the only people selling at this point are making profit. That's really all that's going on or maybe some commercial hedging possibly. So a pullback at this point in time could drop all the way to the $3,000 level and you shouldn't be overly surprised.

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I don't think it will, but that's where the next massive support level is. Essentially at this point in time, my goal is to wait for a pullback and then a bounce and then start buying into the bounce.

Gold Forecast Today 01/04: Continues to See Buyers (graph)

Where I Will Be Trading Gold

That at least gives you a place to put your stop loss at the bottom of the V shaped pattern. I do think that given enough time, gold is going to continue going higher. And based upon the bullish flag that we had formed previously, the measured move was for $3,300. So, we'll have to wait and see if that actually gets reached.

A break above the $3,300 level since this market to who knows where, but right now that's my target. geopolitical risk continue to be a major issue here. That helps gold, it's a way to protect your wealth. Furthermore, we see interest rates drop in general. And that does have a positive effect on gold as well, especially when us rates start to drop. There is a little bit of concern about a recession that's bullish for gold and of course all of the tariff talk just it's not ending. So, it looks a lot like a market that is being bought into as people really don't know what else to do. And in fact, when you look at a longer term chart, this is one of the few assets out there that still is performing beautifully.

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Christopher Lewis
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.

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