Gold Price Futures (GC) Technical Analysis – October 5, 2017 Forecast

December Comex Gold futures are trading higher shortly before the cash market opening. The market is trading inside yesterday’s range which suggests investor indecision and impending volatility.

Daily Technical Analysis

The main trend is down according to the daily swing chart. However, momentum is trying to shift to the upside. A trade through $1271.00 will signal a resumption of the downtrend. A move through $1285.00 will make $1271.00 a new main bottom.

The major retracement zone is $1286.80 to $1268.90. All of the price action this week is taking place inside the retracement zone.

The short-term range is $1271.00 to $1285.00. Its retracement zone is $1278.00 to $1276.30. The market is currently straddling this zone. Aggressive counter-trend buyers are trying to establish a potentially bullish secondary higher bottom.

The main range is $1317.10 to $1271.00. If there is a breakout to the upside then its retracement zone at $1294.10 to $1299.50 will become the primary upside target.

Daily Forecast

Based on the current price at $1280.90 (1114 GMT) and the earlier price action, the direction of the gold market today is likely to be determined by trader reaction to the uptrending angle at $1279.00.

A sustained move over $1279.00 will indicate the presence of buyers. The daily chart is open to the upside with the next targets $1285.00, $1286.80 and $1289.10.

Since the trend is down, we could see a technical bounce on the first test of $1289.10. However, this is also the trigger point for an acceleration into $1294.10.

A sustained move under $1279.00 will signal the presence of sellers. This could lead to a labored break into a series of levels at $1278.00, $1276.30, $1275.00 and $1273.00. The latter is the last potential support angle before the $1271.00 main bottom.

Watch the price action and read the order flow at $1279.00 all session. Trader reaction to this angle will tell us if the buying is getting stronger.