Comex Gold Futures (GC) Technical Analysis – January 20, 2017 Forecast

February Comex Gold futures are trading slightly higher in limited action shortly before the regular session opening and ahead of the inauguration of Donald Trump as President of the United States at 1700 GMT.

Technical Analysis

The main trend is up according to the daily swing chart. A trade through $1218.90 will signal a resumption of the uptrend. A trade below $1196.20 will turn the market lower for the week. The minor trend will turn down on a trade through $1195.40.

The main retracement zone at $1232.70 to $1258.20 is the primary upside target. A downtrending angle passes through this zone at $1245.00, making it a valid upside target also.

Retracement zone support areas include $1193.40 to $1180.20 and $1171.30 to $1160.20.

Forecast

Based on the current price t $1201.20, the market is trading inside a zone formed by the major 50% level at $1232.70 and the intermediate Fibonacci level at $1193.40.

For those who prefer a shorter range, the market is also trading inside a range formed by the minor bottom at $1195.40 and the 8-week high at $1218.90.

The direction of the market today is hard to predict because there are no economic reports. This means the price action will be news driven so anything can happen.

Since gold is trading close to the intermediate Fib at $1193.40, the chances are that sellers will go after the downside first in an effort to trigger stops under the market. Buyers, in the meantime, are going to try to establish a new, higher bottom.

The chart indicates the way of least resistance is up. A move to the downside should produce a labored break.