Gold Price Futures (GC) Technical Analysis – October 9, 2018 Forecast

A stronger U.S. Dollar and rising U.S. Treasury yields are putting pressure on gold prices on Tuesday. However, geopolitical turmoil and concerns over emerging markets are also helping to underpin prices. The market has been in a range for several months as investors try to determine whether gold is an investment or a safe-haven asset.

At 1200, December Comex Gold is trading $1190.60, up $2.00 or +0.17%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through $1184.30 will negate the closing price reversal bottom and signal a resumption of the downtrend. The main trend will change to up on a trade through $1215.80.

The short-term range is $1167.10 to $1220.70. The market is currently trading inside its retracement zone at $1195.40 to $1189.10.  Trader reaction to this zone is likely to determine the near-term direction of the market.

The primary upside target is the retracement zone at $1205.90 to $1215.10. This zone is resistance along with three main tops at $1215.80, $1218.00 and $1220.70.

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 Fibonacci level at $1189.10.

A sustained move over $1189.10 will indicate the presence of buyers. If this creates enough upside momentum then look for a potential surge into the 50% level at $1195.40. This is a potential trigger point for an acceleration into $1205.90.

A sustained move under $1189.10 will signal the presence of sellers. This could trigger a break into an uptrending Gann angle at $1185.60. This is followed closely by $1184.30. This is a potential trigger point for an acceleration to the downside with the next uptrending Gann angle coming in at $1176.40. This is the last potential support angle before the $1167.10 main bottom.