Gold Price Futures (GC) Technical Analysis – January 8, 2018 Forecast

February Comex gold futures are trading lower shortly after the regular session opening. The market is also posting an inside move for a second session, indicating investor indecision and impending volatility.

Traders will be reacting to U.S. Treasury yields, demand for risky assets and the direction of the U.S. Dollar. Three Fed members will be speaking today. They could create volatility if they talk about inflation and monetary policy. Hawkish commentary could be bearish for gold prices.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through $1327.30 will signal a resumption of the uptrend. This could lead to an eventual test of the September 9 main top at $1365.80.

The trend isn’t close to turning down, but the market 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. This zone is controlling the near-term direction of the market. Holding above it will give gold an upside bias. Breaking below $1302.10 will give the market a downside bias.

The major retracement zone at $1290.20 to $1272.30 is support. Inside this zone is a short-term 50% level at $1282.80.

Daily Technical Forecast

Based on 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.

A sustained move over $1317.10 will indicate the presence of buyers. This could drive the market into a long-term downtrending angle at $1324.30. Overcoming last week’s high at $1327.30 could trigger an acceleration to the upside with the next target angle coming in at $1345.05. 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. This could trigger a quick move into the steep uptrending Gann angle at $1306.30. This angle has been guiding gold higher for 17 sessions. We could see the start of a steep break with this angle fails as support.

Potential targets include $1302.10, $1290.20 and $1282.80.