Gold Price Futures (GC) Technical Analysis – January 9, 2018 Forecast

February Comex Gold futures are trading weaker on Tuesday. The catalyst behind the selling pressure is the stronger U.S. Dollar. The market is trading inside last Thursday’s wide range for a third day, suggesting investor indecision and impending volatility.

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, the sideways price action suggests momentum may be getting ready to shift to the downside.

A trade through $1327.30 will signal a resumption of the uptrend. This could trigger an acceleration to the upside since the next major top doesn’t come in until $1365.80.

The market isn’t close to changing the main trend to down, but there is room to the downside for a sizeable correction.

The major retracement zone is $1317.10 to $1302.10. The market has been straddling the Fibonacci level at $1317.10 for six days. This level is controlling the short-term direction of the market.

Another major retracement zone is $1290.20 to $1272.30. This zone is a potential downside target.

The main range is $1238.30 to $1327.30. Its 50% level at $1282.80 is the primary downside target.

Daily Technical Forecast

Based on the early price action, the direction of the gold market today 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 drive the market into the uptrending Gann angle at $1310.30.

We could see a technical bounce on the first test of $1310.30, however, this angle is also the trigger point for an acceleration to the downside with $1302.10 the first target.

Overtaking and sustaining a rally over $1317.10 will signal the return of buyers. The first target is a long-term downtrending angle at $1323.90. This is followed by last week’s high at $1327.30. This price is the trigger point for an acceleration to the upside.