Comex Gold Futures (GC) Technical Analysis – November 10, 2015 Forecast

December Comex Gold futures are called steady-to-better shortly ahead of the regular session opening. Volume and volatility are down for a second day as investors continue to recover from the nearly $100 break since October 28 and Friday’s steep one day sell-off.

Gold is basically mirroring the price action by the U.S. Dollar. It should move again when the Greenback starts to move again. There are no major reports scheduled until Friday, but the price action could be influenced by the comments of several Fed speakers. At the end of the week, the U.S. will report on retail sales. This report is important because it will influence the Fed’s decision to raise rates in December.

Technically, the main trend is down according to the daily swing chart. The two days of sideways action, however, suggests that momentum may be getting ready to shift to the upside at least temporarily.

The first upside objective is the September 11 main bottom at $1097.70. Overcoming this level could trap short-sellers who entered late on Friday. This could trigger further short-covering into the October 2 bottom at $1103.80.

Taking out $1103.80 will likely lead to more short-covering with a steep downtrending angle at $1111.10 the next likely target. Look for renewed selling pressure on a test of this angle.

A sustained move under $1084.50 will signal a resumption of the selling pressure with the July 24 bottom at $1073.70 the next likely target.

Watch the price action and read the order flow on a test of $1097.70. This should tell us whether the bulls or the bears are in control today.