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Gold Price Futures (GC) Technical Analysis – January 2, 2018 Forecast

By:
James Hyerczyk
Updated: Jan 2, 2018, 14:31 UTC

Based on the early price action, the direction of the gold market the rest of the session will be determined by trader reaction to the Fibonacci level at $1317.10.

Comex Gold

A weaker U.S. Dollar and geopolitical unrest in Iran is helping to drive February Comex Gold futures higher on the first day of trading in 2018. After a slightly lower opening, the market recovered and resumed the current 13 session rally.

Comex Gold
Daily February Comex Gold

Daily Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed earlier today when buyers took out the October 16 main top at $1312.70. The next target is the September 26 main top at $1321.00. This price is a potential trigger point for an acceleration into the September 8 main top at $1365.80.

The market is not close to changing the main trend to down, but it is in the window of time for a potentially bearish closing price reversal top. This chart pattern could fuel the start of a two to three day correction.

The main range is $1365.80 to $1238.30. Its retracement zone is $1302.10 to $1317.10. Gold is currently trading inside this zone. Trader reaction to this zone will tell us if the buyers or sellers are in control.

Comex Gold
Daily February Comex Gold (Short-Term)

Daily Technical Forecast

Based on the early price action, the direction of the gold market the rest of the session will be determined by trader reaction to the Fibonacci level at $1317.10.

A sustained move under $1317.10 will indicate the presence of sellers. This could lead to a test of the 50% level at $1302.10.

If $1302.10 fails as support then look for the selling to extend into the support cluster at $1290.30 to $1290.20.

Overtaking $1317.10 will indicate the buying is getting stronger. This could trigger an acceleration into the main top at $1321.00 and the long-term downtrending Gann angle at $1326.30. This is the trigger point for an acceleration into the next downtrending Gann angle at $1346.10. This angle is the last potential resistance before the $1365.80 main top.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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