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

Gold futures are trading lower early Thursday. The selling is being driven by a stronger U.S. Dollar and increased demand for risky assets. Position-squaring ahead of Thursday’s U.S. Federal Reserve interest rate decision and monetary policy statement is also pressuring the dollar-denominated asset. The Fed is widely expected to leave interest rates unchanged, while continuing to express support for a December rate hike.

At 0409 GMT, December Comex Gold futures are trading $1224.50, down $4.10 or -0.33%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, momentum is beginning to shift to the downside. A trade through $1246.00 will signal a resumption of the uptrend.

The minor trend is also up. A trade through $1213.40 will change the minor trend to down. This will also shift momentum to the downside.

The short-term range is $1246.00 to $1213.40. Its retracement zone is $1229.70 to $1233.50. Gold is currently trading on the weak side of this zone.

The main range is $1184.30 to $1246.00. Its retracement zone at $1215.20 to $1207.90 is the primary downside target. This zone provided support on October 31 when the market formed its minor bottom at $1213.40.

Daily Technical Forecast

Based on the early price action, the direction of the December Comex Gold market on Thursday is likely to be determined by trader reaction to the downtrending Gann angle at $1228.00.

A sustained move under $1228.00 will signal the presence of sellers. If the move generates enough downside momentum then we could see a sharp break into the 50% level at $1215.20, followed by a minor bottom at $1213.40 and an uptrending Gann angle at $1213.30.

Since the main trend is up, watch for a technical bounce on the first test of $1215.20 to $1213.30. If $1213.30 fails then look for the selling to extend into the main Fibonacci level at $1207.90.

Overcoming and sustaining a move over the downtrending Gann angle at $1228.00 will indicate the return of buyers. This could trigger a labored rally with potential resistance targets coming in at $1229.70, $1233.50 and a downtrending Gann angle at $1237.00.

The angle at $1237.00 stopped the rally on Wednesday so look for sellers on the first test. Taking it out, however, could trigger a spike into the next downtrending Gann angle at $1241.50. This is the last potential resistance angle before the $1246.00 main top.