Gold Price Futures (GC) Technical Analysis – January 22, 2018 Forecast

April Comex Gold futures are posting a two-sided trade on Monday as investors try to figure out how to play the U.S. government shutdown. A weaker U.S. Dollar is underpinning the market. Earlier in the session, higher Treasury yields put a lid on the market, but the intraday drop in yields is giving the market a boost.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through $1349.20 will signal a resumption of the uptrend. A move through $1329.10 will indicate the selling is getting stronger.

The short-term range is $1349.20 to $1329.10. Its 50% level or pivot is $1339.20. This price is controlling the direction of the market today.

The main range is $1242.70 to $1349.20. If there is a sharp correction over the near-term then its retracement zone at $1296.00 to $1283.40 will become the primary downside target.

Daily Technical Forecast

Based on the early price action, the direction of the gold market the rest of the session is likely to be determined by trader reaction to the pivot at $1339.20.

A sustained move over $1339.20 will indicate the presence of buyers. This could trigger a rally into a steep uptrending Gann angle at $1446.70.

Overtaking $1446.70 will put gold in a bullish position. This could create the upside momentum needed to overtake $1349.20.

A sustained move under $1339.20 will signal the presence of sellers. This could drive the market back into last week’s low at $1329.10. This is a possible trigger point for an acceleration to the downside with $1296.00 the next major downside target.