Gold Price Futures (GC) Technical Analysis – December 12, 2017 Forecast

February Comex Gold is trading lower on Tuesday, shortly before the regular session opening. The market is trading inside yesterday’s range on below average volume. The move suggests investor indecision and impending volatility.

Buyers are scarce because of expectations of another Fed rate hike on Wednesday. Rising interest rates tend to underpin the U.S. Dollar, making it a more desirable asset. This leads to a drop in demand from foreign investors for the dollar-denominated asset.

We could see some movement today at 1330 GMT with the release of the U.S. producer inflation report. However, the price action may be muted ahead of Wednesday’s U.S. consumer inflation report and Fed interest rate decision.

The chart indicates the market is in a precarious position. According to COMEX trade figures, a massive long liquidation took place last week. If this type of selling is over then we could a short-covering rally. If it’s not over then we could see another plunge.

Daily Technical Analysis

The main trend is down according to the daily swing chart. The market is in no position to change the trend to up, but it is in the window of time for a potentially bullish closing price reversal bottom, commonly known as a lower-low, higher-close.

A trade though $1242.40 will signal a resumption of the downtrend. This could lead to a test of the July 14 bottom at $1225.10, followed by the July 10 bottom at $1214.50.

Daily Technical Forecast

Based on the current price at $1245.50 and yesterday’s price action, the direction of the gold market today will be determined by trader reaction to the long-term uptrending Gann angle at $1242.00.

Holding above $1242.00 will indicate the presence of buyers. If this generates enough upside momentum, we could see a rally into the nearest resistance angle at $1259.40.

Taking out $1242.00 with conviction could trigger an acceleration to the downside with targets at $1225.10 and $1214.50.