Gold Price Futures (GC) Technical Analysis – January 3, 2019 Forecast

Gold futures are trading higher on Thursday. Earlier in the session, the market hit its highest level since June 20. However, since reaching a high at $1294.30, the market has given back most of its gains and is in a position to turn lower for the session. A lower close will form a closing price reversal top. This won’t change the trend to down, but it could trigger the start of a 2 to 3 day counter-trend correction.

At 1335 GMT, February Comex gold is trading $1287.30, up $3.20 or +0.25%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, the market is up 12 sessions from its last main bottom, putting it in the window of time for a potentially bearish closing price reversal top.

The market is currently trading inside a major retracement zone at $1285.70 to $1312.30. This zone appears to be providing resistance.

The short-term range is $1236.50 to $1294.30. Its 50% level or pivot at $1265.40 is the first downside target.

The intermediate range is $1216.80 to $1294.30. Its 50% level or pivot at $1255.60 is the next downside target.

Since the main trend is up, buyers could show up on a test of these pivots.

Daily Technical Forecast

Based on the early price action, the direction of the February Comex gold futures contract the rest of the session is likely to be determined by trader reaction to the 50% level at $1285.70 and the uptrending Gann angle at $1284.50. This angle, moving up at a rate of $4.00 per day, has been guiding the market higher since December 14.

Bullish Scenario

A sustained move over $1285.70 will indicate the presence of buyers. If this generates enough upside momentum, we could see a retest of $1294.30. Taking out this level will indicate the buying is getting stronger. This could trigger an acceleration to the upside.

Bearish Scenario

Taking out $1284.50 will signal the presence of sellers. This could trigger an acceleration to the downside. It could be a steep break because the first downside target comes in at $1265.40. This is followed by another uptrending Gann angle at $1260.50 and another 50% level at $1255.80.