Comex Gold Futures (GC) Technical Analysis – October 3, 2014 Forecast

December Comex Gold futures closed on the bearish side of a short-term pivot price on Thursday, giving the market a slight downside bias. The market has been consolidating lately despite the surge in the U.S. Dollar, suggesting some light short-covering action. Volatility has also slowed down considerably but is expected to pick up after the release of today’s September U.S. Non-Farm Payrolls report.

Traders are estimating the U.S. economy added 215K new jobs last month. A better-than-expected number should trigger a rally in the U.S. Dollar and encourage selling pressure against gold.

The short-term range is $1237.00 to $1204.30. The pivot price created by this range is $1220.70. This price is controlling the short-term direction of the market.

Crossing above $1220.70 will indicate strength. A sustained move over this price should trigger a move into $1227.50. Shorting-covering could drive the market through this level into last week’s high at $1237.00 and into the next angle at $1246.30.

If a short-term range has formed between $1297.60 and $1204.30 then look for an eventual rally into the retracement zone at $1251.00 to $1262.00.

On the downside, look for selling pressure if traders fail to overtake $1220.70. This could create enough momentum to take out this week’s low at $1204.30. If this price is taken out with conviction then look for a drive into the December 31, 2013 bottom at $1185.00.