Comex Gold Futures (GC) Technical Analysis – October 2, 2014 Forecast

December Comex Gold futures posted an inside move and a bullish flip on Wednesday, suggesting impending volatility and giving the market a slight bias to the upside. .

The short-term range is $1237.00 to $1204.30. The pivot price of this range at 1220.70 is controlling the short-term direction of the market. Overtaking 1220.70 and holding this level should trigger a fast rally into a downtrending angle at $1227.50. A breakout over this level is likely to trigger a further rally into last week’s high at $1237.00.

The daily chart opens to the upside on a sustained move through $1227.50 with another downtrending angle at $1246.30 a potential upside target. Another range could be forming between $1297.60 and $1204.30, making its retracement zone at $1251.00 to $1262.00 the next major upside target.

The low this week at $1204.30 was only slightly below the weekly chart support angle at $1204.50. Holding this level is key. If it fails then selling pressure could increase, driving the market into the December 31, 2013 bottom at $1185.00.

Hedge and commodity funds are still short in a big way so it is going to take a major event to shake them loose. These events could be a sharp drop in the dollar, a geopolitical event, or another hard hit on the stock market.

The current chart pattern on the daily chart suggests the market could rally to $1251.00 or higher or break down under $1204.30 to $1185.00. Trader reaction to the short-term pivot at $1221.00 should determine the tone for the day.