Comex Gold Futures (GC) Technical Analysis – February 23, 2017 Forecast

April Comex gold futures are trading higher shortly before the regular session opening. Gold investors didn’t seem to be too impressed with the Fed’s suggestion in its minutes released late Wednesday that interest rates could go up “fairly soon”. Investors appear to be taking hedge protection in gold as far-right French presidential candidate Marine Le Pen climbs the polls ahead of the first run-off election.

Technical Analysis

The main trend is up according to the daily swing chart. A trade through $1245.10 and $1246.60 will signal a resumption of the uptrend. This could trigger an acceleration to the upside with the next major upside target coming in at $1261.10.

The minor trend will turn down on a trade through $1226.80. The main trend will turn down on a move through $1217.50.

A pair of 50% levels at $1235.60 and $1232.00 are new support. Holding above these levels are giving the market an upside bias.

The short-term range is $1182.60 to $1246.60. If there is a correction then its retracement zone at $1214.60 to $1207.10 will become the primary downside target.

Forecast

Based on the current price at $1239.80 and the earlier price action, the direction of the gold market today is likely to be determined by trader reaction to a pair of downtrending angles at $1241.60 and $1236.60.

A sustained move over $1241.60 will signal the presence of buyers. This could create the upside momentum to overtake $1245.10 and $1246.60. If the buying volume continues to increase then look for the rally to extend into $1261.10 over the near-term.

A break below $1236.60 will signal the presence of sellers. This is followed closely by $1235.60. Look for a fast break into $1232.00 if this price fails.

The 50% level at $1232.00 is also the trigger point for an acceleration into the uptrending angle at $1227.50.

Simply stated, look for an upside bias to develop on a sustained move over $1241.60 and a downside bias on a sustained move under $1235.60.