Our Gold Price Update today is a continuation of the series of article we have been publishing this month to answer questions that are top of mind for investors after the sharp market correction of February 2018. As mentioned in our recent articles, our InvestingHaven research team has been reviewing different market movements and correlations using our Intermarket methodology.
So far, we started with covering the historical move in Yields and answered the question of Stock Market Crash 2018 About To Start? We also provided Another Important Chart Pointing Towards Risk on for Investors
The next stop was to share our updated outlook for Gold prices in the current conjuncture and that’s what our article will cover today.
Gold Price Outlook seems headed for a sideways movement prior to a possible Breakout.
When we were conducting our intermarket analysis, we came out to the conclusion that we are still forecasting a risk on period for Stock markets. But that doesn’t mean that Gold Price is Bearish, at least nothing indicates a Bearish move for now.
In fact, Gold prices tend to go up in periods of either ultra fear (not relevant in this case see why here and here) or periods of rising inflation during a risk on period. So it all ties in and so far and the future moves will provide confirmation.
From our 2018 Gold Forecast, we mentioned the possibility of a neutral trend in Gold for 2018. We mentioned back then that although unlikely, it should be taken seriously. If it was to happen, these are the price levels to watch:
If the price of gold moves above $1280, and remains there for a longer period of time without breaking out of $1375, it would indicate that a new trend has started: the downtrend would be replaced by a sideways (neutral) trend.
The chart below illustrates how Gold price is trading outside of the falling channel from 2011 but given the heavy resistance ahead, it might trade sideways before moving potentially above the important resistance level at 1375 USD.
How long will the sideways movement last? Hard to predict but we will be watching and updating our readers. For now we believe that Gold is likely to trade sideways with a Bullish scenario possibility if the price Breaks out of the 1375 area. The reasons why we believe Gold might turnout Bullish in 2018 are based on these 5 charts we shared previously with our readers.
