Gold Price Futures (GC) Technical Analysis – October 3, 2017 Forecast

December Comex Gold futures are trading lower on Tuesday shortly before the regular session opening. However, the intraday price action may be suggesting the selling is over at least temporarily.

With the Euro turning higher and in a position to post a closing price reversal bottom and the U.S. Dollar Index close to forming a closing price reversal top, gold may be ready to reverse course on profit-taking and aggressive counter-trend buying.

In other words, it’s a low risk buy at current price levels as long as you take a quick exit if the major Fibonacci level fails as support.

Daily Technical Analysis

The main trend is down according to the daily swing chart. However, due to the prolonged move down in terms of price and time, a close over $1275.80 will produce a potentially bullish closing price reversal bottom.

The move is taking place inside a major long-term retracement zone, or value area, formed by $1286.80 to $1268.90. Today’s low at $1271.00 is just slightly above the major Fibonacci level at $1268.90.

A closing price reversal bottom will not mean the trend is changing to down, but it may lead to a 2 to 3 day retracement rally. The first target is the major 50% level at $1286.80.

The short-term range is $1317.10 to $1271.00. If buyers can overtake $1286.80 then don’t be surprised if we retrace this range with $1294.10 to $1299.50 the primary upside target.

Daily Forecast

We’re going to be watching yesterday’s close at $1275.80 to see if buyers can take out this level and turn higher for the session. If they do then this could trigger a massive short-covering rally.

The downtrending Gann angle at $1277.10 is currently guiding the market lower. Look for an acceleration to the upside if buyers can take out this angle.

If we do get the breakout then look for $1286.80 to be the next target.

All bets are off on the reversal bottom if buyers can’t overcome $1275.80.

If $1271.00 fails then look for a move to $1268.90. If this price fails then look for a possible acceleration to the downside.

If a rally is going to take place then it’s going to need help from a weaker U.S. Dollar, lower Treasury yields and a weaker stock market.