Gold Price Forecast – February 18, 2021

Gold Technical Analysis and Near-Term Outlook

Gold is still poised to challenge a major target and bearish decision point at $1759. This is a probable stalling point because it is the smaller than (0.618) target of the primary wave down from $2107.6 and the equal to (1.00) target of the more recent subwave down from $1878.9. However, a move up from $1759 will likely prove to be corrective of the decline. Closing below $1759 will clear the way for an eventual decline to the $1631 equal to (1.00) target of the primary wave down from $2107.6.

Gold - Daily Chart
Gold – Daily Chart

Today’s formation of an inverted hammer dampens near-term odds for a test of $1759 and warns that the move down might stall soon. Again, the most probable stalling point is $1759. Nevertheless, settling above $1791 will confirm the inverted hammer and call for a test of key near-term resistance at $1809. For now, this level is expected to hold, but closing above $1809 will call for a larger test of resistance and possibly a period of consolidation before the decline continues.

This is a brief analysis for the next day or so. Our weekly Metals Commentary and daily updates are much more detailed and thorough energy price forecasts that cover key COMEX precious metals futures contracts and LME Non-Ferrous (Base) metals, spot gold, the gold/silver ratio, and gold ETFs. If you are interested in learning more, please sign up for a complimentary four-week trial.

Published by

Dean Rogers, CMT

Dean Rogers, CMT is the general manager of the Kase Call Center in Albuquerque, New Mexico. He oversees all of Kase and Company, Inc.’s operations including research and development, marketing, and client support. Dean began his career with Kase in early 2001 as a programmer but has developed into Kase’s senior technical analyst. He writes Kase’s award-winning weekly Crude Oil, Natural Gas, and Metals Commentaries. He is an instructor at Kase's classes and webinars and provides all of the necessary training and support for Kase's hedging models and trading indicators for both retail and institutional traders.

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