Gold Price Futures (GC) Technical Analysis – October 18, 2017 Forecast

December Comex Gold futures are trading lower on Wednesday. The market is being pressured a stronger U.S. Dollar which is responding to rising U.S. Treasury yields and strong demand for higher-yielding assets.

Daily Swing Chart

The main trend is down according to the daily swing chart. Momentum has turned back down after rallying against the trend for six trading sessions.

The main trend will turn back up on a move through $1308.40. A trade through $1262.80 will signal a resumption of the downtrend.

Gold is now trading inside a major retracement zone at $1286.80 to $1268.90. Inside this zone is the main retracement zone at $1285.60 to $1280.20. The market is also testing this zone.

Daily Forecast

Based on the early price action, the direction of the market the rest of the session is likely to be determined by trader reaction to the Fibonacci level at $1280.20.

Holding above $1280.20 could breathe some life into the gold market, but any rally is likely to be labored because of a pair of 50% levels at $1285.60 and $1286.80 and a steep downtrending angle at $1292.40.

Taking out $1280.20 will be a sign of weakness, but a failure to hold the uptrending angle at $1278.80 could trigger an acceleration to the downside with the next three targets coming in at $1270.80, $1268.90 and $1266.80. The latter is the last potential support angle before the $1262.80 main bottom.