Gold Price Futures (GC) Technical Analysis – October 9, 2017 Forecast

December Comex Gold futures are trading higher shortly before the regular session opening. Prices are being driven higher by renewed concerns over North Korea. Gains are probably being limited by stronger equity markets. The market could surge higher if stocks turn lower later today.

Daily Technical Analysis

The main trend is down according to the daily swing chart. However, momentum turned higher when Friday’s potentially bullish closing price reversal bottom was confirmed earlier in the session.

Gold is currently trading inside a major retracement zone bounded by $1286.80 to $1268.90.

The main range is $1317.10 to $1262.80. Its retracement zone at $1290.00 to $1296.40 is the primary upside target. Since the main trend is down, we could see a technical bounce on the first test of this zone. Aggressive counter-trend sellers are going to try to form a secondary lower top.

Daily Forecast

Based on the current price at $1285.00 and the earlier price action, the direction of the gold market the rest of the session is likely to be determined by trader reaction to the major 50% level at $1286.80.

A sustained move under $1286.80 will indicate the return of sellers. This could trigger a break into a pair of Gann angles at $1281.10 and $1278.80.

Crossing to the weak side of $1278.80 will indicate the selling is getting stronger with the next potential target angle at $1270.80.

A sustained move over $1286.80 will signal the presence of buyers with the first target a 50% level at $1290.00. This is a potential trigger point for an acceleration into $1296.40 then $1299.10.

We’re in a news driven market so the story about North Korea is going to have to continue to build in order to sustain the rally, or prices will retreat quickly. Volume is expected to be low today due to a U.S. bank holiday. This may or may not help the volatility.