Gold Price Futures (GC) Technical Analysis – February 14, 2018 Forecast

April Comex Gold futures are trading lower after a jump in U.S. consumer prices sparked inflation fears. The Consumer Price Index rose 0.5 percent last month against projections of a 0.3 percent increase. Excluding volatile food and energy prices, the index was up 0.3 percent against estimates of 0.2 percent.

Headline CPI rose 2.1 percent on an annualized basis against expectations of 1.9 percent. Core CPI increased 1.8 percent versus estimates of 1.7 percent.

The Labor Department indicated that price pressures were “broad-based,” with rises in gasoline, shelter, apparel, medical care and food.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through $1309.00 will signal a resumption of the downtrend.

The short-term range is $1370.50 to $1309.00. Its retracement zone at $1339.80 to $1347.00 is resistance. The lower, or 50% level of this range essentially stopped the rally earlier today at $1339.40.

The main range is $1242.70 to $1370.50. If sellers can take out $1309.00 then its retracement zone at $1306.60 to $1291.50 will become the primary downside target.

Daily Technical Forecast

Based on the early trade, the direction of the gold market the rest of the session is likely to be determined by trader reaction to the short-term uptrending Gann angle at $1325.00.

A sustained move over $1325.00 will indicate the presence of buyers. Overcoming the longer-term uptrending Gann angle at $1328.70 will indicate the buying is getting stronger. This could trigger a surge into $1339.80, followed by $1342.50 and $1347.00.

A sustained move under $1325.00 will signal the presence of sellers. The next two targets are uptrending Gann angles at $1317.00 and $1313.00. The latter is the last potential support angle before the $1309.00 main bottom.

The trigger point for a potential acceleration to the downside is $1306.60. Taking out this level with conviction could drive gold into $1291.50 and an uptrending Gann angle at $1285.70.