Gold Price Futures (GC) Technical Analysis – November 6, 2018 Forecast

Gold futures are trading higher shortly after the regular session opening. The volume is light as investors take a cautious approach ahead of today’s U.S. mid-term elections. The market is being lightly underpinned by a weaker U.S. Dollar, lower Treasury yields and weaker equity markets. As far as the election is concerned, investors are calling for heightened volatility so gold’s appeal as a safe-haven asset may be enhanced late Tuesday/early Wednesday.

At 1309 GMT, December Comex Gold futures are trading $1235.10, up $2.80 or +0.23%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, after spiking to the upside last Thursday, the market has moved sideways the last three sessions. A trade through $1239.30 will signal the return of buyers, while a move through $1246.00 will signal a resumption of the uptrend.

A trade through $1239.30 will make $1213.40 a new main bottom. If this occurs then a trade through $1213.40 will change the main trend to down.

The short-term range is $1246.00 to $1213.40. It is currently trading on the strong side of its retracement zone at $1233.50 to $1229.70, giving the market a slight upside bias. This zone is new support. It is controlling the near-term direction of the market.

The main range is $1184.30 to $1246.00. If $1229.70 fails as support then its retracement zone at $1215.20 to $1207.90 will become the primary downside target.

Daily Technical Forecast

Based on the early trade, the direction of the December Comex Gold futures contract on Tuesday is likely to be determined by trader reaction to the short-term retracement zone at $1229.0 to $1233.50. A downtrending Gann angle at $1232.00 passes through this zone. It is also controlling the direction of the market.

A sustained move over $1233.50 will indicate the presence of buyers. If this move creates enough upside momentum then look for a quick rally into a downtrending Gann angle at $1239.00. This is followed by last week’s high at $1239.30. This is a potential trigger point for an acceleration to the upside with the next Gann angle coming in at $1242.50. This is the last potential resistance angle before the $1246.00 main top.

A failure to hold $1233.50 will be the first sign of weakness. This could drive gold into the 50% level at $1229.70. The daily chart indicates there is plenty of room to the downside under $1229.70. The next major target is the main 50% level at $1215.20.

Additionally, holding above the downtrending Gann angle at $1232.00 will indicate the presence of buyers. Crossing to the weak side of this angle will give the market a downside bias.

We’re basically looking for a bullish tone to develop on a sustained move over $1233.50 and for a bearish tone to develop on a sustained move under $1229.70.