Comex Gold Futures (GC) Technical Analysis – October 21, 2014 Forecast

December Comex Gold continued to trade inside last week’s range, mirroring the U.S. Dollar and Euro’s chart pattern. The higher close, however, gives the market a slight upside bias on the opening today.

The short-term range is $1222.00 to $1250.30. The pivot of this range is $1236.10. The market has straddled this level for three days. On Monday, this level was the support that launched the rally into the close.

If the rally continues today then look for an early test of last week’s high at $1250.30. This is followed by the major 50% level at $1253.80. Since the main trend is down, sellers may come in at this price to defend the trend. It is also a natural profit-taking area.

A sustained move over $1253.80 will indicate the buying is getting stronger. The daily chart indicates there is plenty of room to the upside with a price cluster at $1270.40 to $1273.30 a potential upside target.

Gold traders are following the Euro and the U.S. Dollar. A weak currency market today could trigger a rally in gold. If the dollar strengthens then gold will sell-off.

The key level to watch on the downside is the short-term pivot at $1236.10 and on the upside, the major 50% level at $1253.80.