Gold Price Futures (GC) Technical Analysis – October 8, 2018 Forecast

Gold futures are trading lower on Monday. U.S. banks are closed and there are no major economic reports, however, traders are reacting to a stronger U.S. Dollar and surprise move by the People’s Bank of China. The PBoC announced on Sunday a steep cut in the level of cash that banks must hold as reserves, stepping up moves to lower financing costs and spur growth.

At 0909 GMT, December Comex Gold futures are trading $1198.20, down $7.40 or -0.62%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. However, the closing price reversal bottom on September 28 is generating some upside momentum. A trade through $1215.80 will change the main trend to up. A move through $1184.30 will negate the closing price reversal top and signal a resumption of the downtrend.

The short-term range is $1215.80 to $1184.30. Its 50% level or pivot is $1200.10.

On the upside, retracement zone resistance is at $1205.90 to $1215.10. On the downside, retracement zone support is $1195.40 to $1189.10.

---

Suggested Articles

• China’s Stock Market Falls More Than 4%, Weak Payrolls Data Spurs sell-off in Emerging Markets
• A Reserve Rate Cut by the PBoC Adds to the Greenback’s Allure
• The Week Ahead – Geo-Politics to Reign Supreme

---

Daily Technical Forecast

Based on the early price action, the direction of the December Comex Gold futures contract the rest of the session is likely to be determined by trader reaction to the short-term pivot at $1200.10.

A sustained move under $1200.10 will indicate the presence of sellers. The first downside target is the main 50% level at $1195.40. This is a potential trigger point for a further break into the main Fibonacci level at $1189.10 and the long-term uptrending Gann angle at $1185.10. This is the last potential support angle before the $1184.30 main bottom.

A sustained move over $1200.10 will signal the presence of buyers. The first upside target is a cluster of levels at $1203.10, $1205.90 and $1206.70.

The downtrending Gann angle at $1206.70 is a potential trigger point for an acceleration into another downtrending Gann angle at $1213.70, followed by the main Fibonacci level at $1215.10.