Comex Gold Futures (GC) Technical Analysis – November 17, 2015 Forecast

December Comex Gold is trading lower shortly before the regular session opening. Greater demand for stocks and other higher-yielding assets is hurting the market. Traders are also selling in anticipation of a Fed rate hike in December. Today’s U.S. consumer inflation report should be strong enough to support the rate hike. Look for further pressure today if the CPI number exceeds expectations.

Yesterday, gold popped to $1097.40 in reaction to the attack on Paris last Friday. The move failed to draw the attention of the major players and selling resumed by the close.

The main trend is down according to the daily swing chart, however, $1097.40 is a new minor top.

The nearest support is the April 24 main bottom at $1073.70. This is followed by last week’s low at $1073.00. The daily chart opens up to the downside under this level with $1050.00 the next target.

Holding $1073.00 will indicate the presence of light buyers or perhaps the lack of sellers. Overcoming the angle at $1079.00 will indicate the buying is getting stronger. Overtaking the steep angle at $1085.00 will put gold in a position to challenge the major resistance at $1097.40 to $1097.70.

Look for a bullish tone to develop on a sustained move over $1079.00 and a bearish tone to develop on a sustained move under $1073.00. Watch for increased volatility and volume with the release of the U.S. consumer inflation report at 8:30 a.m. ET.