Comex Gold Futures (GC) Technical Analysis – December 8, 2016 Forecast

December Comex Gold futures are trading lower after the European Central Bank’s decision drove the Euro lower and the U.S. Dollar higher. The market is trading inside yesterday’s range which suggests investor indecision and impending volatility.

Technical Analysis

The main trend is down according to the daily swing chart. The market is far from turning the main trend to up, but there is room to the upside if this week’s high at $1190.20 is taken out. A sustained move under $1158.60 will signal a resumption of the downtrend.

The short-term range is $1158.60 to $1190.20. Its 50% level or pivot at $1174.40 is controlling the short-term direction of the market.

The main range is $1236.10 to $1158.60. Its retracement zone at $1197.40 to $1206.50 is the primary upside target.

Gold’s 52-week range is $1055.20 to $1387.10. Its retracement zone at $1182.00 to $1221.20 is controlling the long-term direction of the market. Trading below this zone is giving the market a downside bias.

Forecast

Based on the current price at $1173.00 and the earlier price action, the direction of the gold market today is likely to be determined by trader reaction to the short-term pivot at $1174.40.

A sustained move under $1174.40 will indicate the presence of sellers. The daily chart indicates there is room to the downside with $1158.60 the target.

A sustained move over $1174.40 will signal the presence of buyers. Overtaking this level will likely trigger a breakout over a downtrending angle at $1176.10. This is the trigger point for an acceleration to the upside with $1182.00 the next target.

Overcoming $1182.00 will put the market inside the major retracement zone. This could trigger a short-covering rally with the next target $1190.20, followed by $1197.40.

Watch the price action and read the order flow at $1174.40 the rest of the session. Trader reaction to this price will set the tone for the day.