Gold Price Forecast March 27, 2018, Technical Analysis
Gold markets initially fell during the trading session on Monday but turned around to form a massive hammer. The hammer is just below the $1350 level, which is a resistance barrier as you can see on the daily chart. If we can break above that level, the market will test the $1360 level, which is the end of the overall resistance from what I can see. If we can break above the $1360 level, I think the market could continue to go towards the $1400 level.
A breakdown below the bottom of the hammer would be a very negative sign and turn it into a “hanging man.” That of course is a very negative sign, and I think at that point we would likely see gold dropping towards the $1330 level, possibly the $1310 level. I think that there is a significant amount of concern out there that could move this market, as gold sometimes is thought of as a haven in times of trouble. With the concerns around a potential trade war, that of course will continue to potentially move the gold market as people use it to protect their wealth if things get dicey between the United States and China.
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Ultimately, I do think that we break out longer term, especially if the US dollar continues to get hammered. Otherwise, I think there is a massive “floor” around the $1300 level. If we do get a sell signal, it will be for short-term trading more than anything else.