Gold Price Futures (GC) Technical Analysis – October 2, 2018 Forecast

Gold futures are trading higher on Tuesday shortly before the regular session opening. The market is in a position to breakout to the upside after confirming Friday’s closing price reversal bottom. However, the buying volume is extremely light with buyers likely being spooked by the firmer U.S. Dollar. Gold could get support later in the session if demand for risky assets continues to fall and if Treasury yields continue to drop.

At 1200 GMT, December Comex Gold futures are trading $1295.00, up $3.30 or +0.29%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. However, momentum shifted to the upside earlier today following the confirmation of Friday’s closing price reversal bottom. The main trend will change to up on a trade through $1215.80. A trade through $1184.30 will negate the closing price reversal bottom and signal a resumption of the downtrend.

The short-term range is $1215.80 to $1184.30. Its 50% level or pivot at $1200.10 is the first upside target.

The intermediate range is $1167.10 to $1220.70. Traders are trying to turn its retracement zone at $1193.90 to $1187.60 into support.

The main range is $1244.70 to $1167.10. Its retracement zone at $1205.90 to $1215.10 is the primary upside target and major resistance.

Daily Technical Forecast

Based on the early price action, the direction of the December Comex Gold futures contract today is likely to be determined by trader reaction to the intermediate 50% level at $1193.90.

A sustained move over $1193.90 will indicate the presence of buyers. If this move creates enough upside momentum then look for a move into an uptrending Gann angle at $1199.10 and the short-term pivot at $1200.10.

The pivot at $1200.10 is the trigger point for a potential acceleration into $1205.90. Taking out this level could extend the rally into $1215.10 to $1215.80.

A sustained move under $1193.90 will signal the presence of sellers. This could trigger a break back into $1187.60. The next target is a support cluster at $1184.30 to $1183.10. Look for an acceleration to the downside if $1183.10 fails as support.