Gold Price Futures (GC) Technical Analysis – October 23, 2017 Forecast

Rising U.S. Treasury yields are helping to boost the U.S. Dollar which is pressuring dollar-denominated December Comex Gold futures shortly before the regular session opening. Increased appetite for risk is also making gold a less-desirable asset.

Daily Technical Analysis

The main trend is down according to the daily swing chart. The downtrend was reaffirmed early Monday when sellers took out the last main bottom at $1277.60. If the downside momentum continues then the October 6 main bottom at $1262.80 will become the next downside target.

The trend will change back to up on a move through $1292.90.

The long-term retracement zone is $1286.80 to $1268.90. The market is currently trading inside this zone. This zone is controlling the longer-term direction of the market.

Inside this retracement zone is the main retracement zone at $1285.60 to $1280.20. The market is currently trading on the weak side of this zone, giving gold a downside bias and signaling that downside momentum is increasing.

Daily Forecast

Based on the current price at $1276.30 and the current downside momentum, the next downside target is an uptrending angle at $1273.80. We could see a technical bounce on the first test of this angle but if it fails then look for an acceleration into the support cluster at $1268.90 to $1268.30. This area is the last potential support before the $1262.80 main bottom.

On the upside, overtaking $1280.20 will signal the return of buyers. This could trigger a short-covering rally into a pair of 50% levels at $1285.60 and $1286.80, followed by a downtrending angle at $1288.40.

Look for a downside bias as long as Treasury yields, the U.S. Dollar and U.S. stocks continue to rise.