Gold Price Futures (GC) Technical Analysis – October 11, 2017 Forecast

December Comex Gold futures are trading slightly lower shortly before the regular session opening and ahead of today’s release of the latest Fed Monetary Policy Meeting minutes at 1800 GMT. Hawkish minutes should underpin the U.S. Dollar which would put pressure on gold prices.

Daily Technical Analysis

The main trend is down according to the daily swing chart. Momentum has been trending higher, however, since last Friday’s closing price reversal bottom. A trade through $1296.70 will indicate upside momentum is getting stronger.

The main range is $1317.10 to $1262.80. It retracement zone at $1290.00 to $1296.40 is currently being tested. This zone was the primary upside target of the closing price reversal bottom.

Since the main trend is down, we expect to see sellers show up on a test of this zone in order to defend the downtrend. They are going to try to produce a secondary lower top.

Aggressive counter-trend buyers are going to try to take out the retracement zone in an effort to challenge the last main top at $1317.10.

Additional support is a major 50% level at $1286.80.

The short-term range is $1262.80 to $1296.70. If there is a correction then its retracement zone at $1279.80 to $1275.70 will become the primary downside target.

Daily Forecast

Based on the current price at $1292.70, the closest upside targets are $1295.10, $1296.40 and $1296.70.

The trigger point for an acceleration to the upside is $1296.70. Taking out this price with conviction could drive the market into the next downtrending angle at $1306.10.

On the downside, support is layered at $1290.00 and $1286.80.

Gold is basically testing the main retracement zone at $1290.00 to $1296.40. Trader reaction to this zone will tell us if the buyers or sellers are in control.

Look for a bullish tone to develop if $1296.40 is taken out with rising volume.

A bearish tone should develop if $1290.00 is taken out by strong selling pressure.

Traders should watch the price action and read the order flow at $1286.80. This is the trigger point for an acceleration to the downside with $1279.80 the next likely target.