Comex Gold Futures (GC) Technical Analysis – February 1, 2017 Forecast

April Comex Gold futures are trading flat to slightly higher shortly before the regular session opening. The market is also trading inside yesterday’s range. This suggests investor indecision and impending volatility.

Although investors can wait for the slew of economic data today and the Fed’s monetary policy statement later in the session, the wildcard remains President Trump. His unpredictability is what’s driving the gold market higher. Currently, he appears to be on a mission to weaken the U.S. Dollar in order to improve trade. The weaker dollar is also helping to support the dollar-denominated gold market.

Technical Analysis

The main trend is down according to the daily swing chart. However, momentum is trending higher. A trade through $1223.00 will negate the closing price reversal top and change the main trend to up.

Taking out $1223.00 could generate the upside momentum needed to drive the market into the major 50% level at $1235.60.

The short-term range is $1223.00 to $1182.60. Its retracement zone at $1207.60 to $1202.80 is currently support.

Forecast

Based on the current price at $1212.70, the direction of the market today is likely to be determined by trader reaction to the uptrending angle at $1206.60 and the downtrending angle at $1217.00.

A sustained move over $1217.00 will indicate the presence of buyers. This could trigger a breakout into the main top at $1223.00. This is followed by a long-term downtrending angle at $1231.90 and the main 50% level at $1235.60.

A sustained move under $1206.60 will signal the presence of sellers. This could trigger an acceleration into the short-term 50% level at $1202.80.

The daily chart opens up to the downside under $1202.80 with the next target a major support cluster at $1189.20 to $1188.60.

Look for an upside bias to develop on a sustained move over $1217.00 and a downside bias under $1206.60.