Gold Price Futures (GC) Technical Analysis – November 15, 2017 Forecast

December Comex Gold futures are trading higher on Wednesday in response to a drop in the U.S. Dollar, lower Treasury yields and weaker demand for higher-yielding assets. Gold should continue to strengthen if these three factors continue to drive buyers into the safe haven asset.

Later today, investors will get the opportunity to react to U.S. consumer inflation data for October. It is expected to show a marginal increase in consumer prices.

Daily Technical Analysis

The main trend is down according to the daily swing chart. However, upside momentum is building with the formation of a secondary higher bottom at $1263.80 and a new minor bottom at $1269.70.

A trade through $1289.50 will change the main trend to up. A move through the next main top at $1292.90 will indicate the buying is getting stronger. This could eventually lead to a test of a pair of tops at $1308.40 and $1317.10.

The main range is $1317.10 to $1262.80. Its retracement zone at $1290.00 to $1296.40 is the primary upside target. We could see selling on the first test of this zone. It may be controlling the longer-term direction of the gold market.

 

Daily Technical Forecast

Based on the current price at $1285.90 and the earlier price action, the direction of the gold market the rest of the session is likely to be determined by trader reaction to the downtrending angles at $1285.05 and $1286.40.

Overcoming $1286.40 and sustaining the rally will indicate the buying is getting stronger. This could trigger an acceleration to the upside with the first major target the main top at $1289.50, followed closely by $1290.00. The rally could continue to strengthen on a sustained move over $1290.00 with targets coming in at $1292.90 and $1296.40.

A sustained move under $1285.50 will signal the presence of sellers. Momentum could reverse on this move with the next target angle coming in at $1276.80.

Basically, look for the upside momentum to continue on a sustained move over $1286.40 and for a possible intraday downside bias to develop on a sustained move under $1285.50.