Gold Price Futures (GC) Technical Analysis – January 11, 2018 Forecast

February Comex Gold futures are trading nearly flat shortly before the regular session opening and the release of key U.S. producer inflation data. The results of the report could trigger a volatile reaction in gold. If the PPI comes in higher than expected then this could spark a rally in the U.S. Dollar which would then encourage investors to sell dollar denominated gold.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through $1328.60 will signal a resumption of the uptrend. If this move gains enough traction, we could see an eventual test of the September 8 main top at $1365.80.

The market isn’t close to changing the main trend to down, but it is in the window of time for a potentially bearish closing price reversal top.

The main range is $1365.80 to $1238.30. Its retracement zone is $1302.10 to $1317.10. Trader reaction to this zone will determine the near-term tone of the market. The important level to watch is the Fibonacci level at $1317.10. This level has been straddled for eight trading sessions.

An even longer-term retracement zone comes in at $1290.20 to $1272.30. This zone is a target and support zone.

The short-term range is $1238.30 to $1328.60. If there is a correction then its 50% level at $1283.50 will be the primary downside target. Since the main trend is up, buyers are likely to come in on a test of this level.

Daily Technical Forecast

Based on the current price at $1318.70 and the earlier price action, the direction of the gold market today is likely to be determined by trader reaction to the Fibonacci level at $1317.10.

Holding above $1317.10 will indicate the presence of buyers. Overtaking the steep uptrending angle at $1318.30 will indicate the buying is getting stronger. Crossing over to the strong side of the downtrending angle at $1322.80 and sustaining the move could trigger a move into $1328.60. This price could be the trigger point for a possible acceleration into the next downtrending Gann angle at $1344.30. This is the last potential resistance angle before the $1365.80 main top.

A sustained move under $1317.10 will signal the presence of sellers. The daily chart indicates there is plenty of room to the downside with $1302.10 the next likely target. This is followed by $1290.20 and $1283.50.