Gold Price Futures (GC) Technical Analysis – October 30, 2017 Forecast

December Comex Gold futures are trading flat shortly before the regular session opening. The market opened higher but the rally stalled. So far traders aren’t responding to the weaker U.S. Dollar. On Friday, the market recovered from early session weakness. The catalyst behind the move was the crisis in Catalonia. So far, this appears to be a non-issue today.

What could be an issue today are possible arrests related to the Mueller Investigation. If someone close to President Trump is arrested then gold could rally on safe haven buying.

Daily Technical Analysis

The main trend is down according to the daily swing chart. On Friday, gold formed a potentially bullish closing price reversal bottom. A trade through $1275.20 will confirm the chart pattern. This will shift momentum to the upside and it could lead to the start of a 2 to 3 day counter-trend rally.

A trade through $1263.80 will negate the chart pattern and signal a resumption of the downtrend. This could lead to a test of the next main bottom at $1262.80. If this price fails then look for a further break into the August 8 main bottom at $1257.10.

The nearest support is a major Fibonacci level at $1268.90.

On the upside, resistance is a pair of 50% levels at $1286.10 and $1286.80, followed by a Fibonacci level at $1291.40.

Daily Forecast

Based on the earlier price action, the direction of gold today is likely to be determined by trader reaction to the uptrending angle at $1270.80.

A sustained move over $1270.80 will indicate the presence of buyers. The first target is Friday’s high at $1275.20. This could trigger a further rally into another uptrending angle at $1278.80. This is a possible trigger point for an acceleration into $1286.10.

A sustained move under $1270.80 will signal the presence of sellers. This is followed by a Fib level at $1268.90.

Crossing to the weak side of a steep downtrending angle will put gold in a bearish position with potential targets at $1263.80, $1262.80 and $1257.10.

Watch the price action and read the order flow at $1270.80 all session.