Comex Gold Futures (GC) Technical Analysis – February 15, 2017 Forecast

April Comex Gold futures are trading slightly higher shortly ahead of the regular session opening and the release of the U.S. retail sales and consumer inflation report. Later in the session, investors will get the opportunity to react to comments from Fed Chair Janet Yellen who testifies before Congress for a second day. On Tuesday, she made a hawkish remark that hints at a possible rate hike in March. This helped drive the dollar higher while pressuring the dollar-denominated futures contract.

Gold investors may also react to political concerns in France and the escalating problems in the Trump Administration. Weaker equity prices could bring support into gold if it means a shift in investor sentiment from “risk on” to “risk off”.

Technical Analysis

The main trend is up according to the daily swing chart. A trade through $1246.60 will signal a resumption of the uptrend. A move through $1220.30 will mean the selling pressure is increasing.

The main range is $1182.60 to $1246.60. Its retracement zone at $1214.60 to $1207.10 is the primary downside target. An uptrending angle at $1208.60 passes through this zone today, making it a valid target also.

On the upside, the retracement level resistance is clustered at $1233.40, $1235.60 and $1236.60. This area stopped the rally on Tuesday.

Forecast

Based on the current price at $1226.70, the direction of the gold market is likely to be determined by trader reaction to the downtrending angle at $1226.60.

A sustained move under $1226.60 will indicate the presence of sellers. The daily chart is open to the downside with the first target $1220.30. This is a possible trigger point for an acceleration into the 50% level at $1214.60.

A sustained move over $1226.60 will signal the presence of buyers. This could create enough upside momentum to challenge a series of resistance levels at $1233.40, $1234.60, $1235.60, and a price cluster at $1236.60.

The cluster at $1236.60 is the best target, but it is also the trigger point for an acceleration to the upside with $1241.60 the next target.

Watch the price action and read the order flow at $1226.60 today.