Gold Price Futures (GC) Technical Analysis – October 16, 2017 Forecast

December Comex gold futures are trading higher but gains could be limited by a firmer U.S. Dollar and stronger demand for higher-yielding assets. That’s the plan, however, there is evidence that the strong correlation between gold, the dollar and equities has fallen lately.

Daily Technical Analysis

The main trend is down according to the daily swing chart, but momentum has been trending higher since the formation of a closing price reversal bottom at $1262.80 on October 6. The main trend will turn up on a trade through $1317.10.

The main range is $1317.10 to $1262.80. The market is currently trading on the strong side of its retracement zone at $1296.40 to $1290.00, indicating strong upside momentum. This zone is also new support.

Daily Forecast

Based on the early price action, the first upside target today is a pair of angles at $1310.10 and $1310.80. We could see a technical bounce on the first test of this area.

Overtaking $1310.80 will indicate the buying is getting stronger with $1313.60 the next target angle. This is the last potential resistance angle before the $1317.10 main top.

A failure to overtake and sustain a rally over $1310.10 will signal the presence of sellers. This could trigger a pullback into the downtrending angle that provided resistance earlier today. This angle comes in at $1303.10.

Look for an acceleration into $1296.40 if the $1303.10 angle fails.

Basically, we’re looking for the rally to continue if buyers can overcome and sustain a rally over $1310.80 and for a sharp break if the angle at $1303.10 fails as support.