Gold Price Futures (GC) Technical Analysis – September 10, 2018 Forecast

Gold futures are trading higher shortly after the regular session opening on Monday. Gold is trading higher in reaction to a weaker U.S. Dollar against a basket of major currencies. The move is being primarily supported by a rally in the Euro.

At 1436 GMT, December Comex Gold futures are trading $1202.50, up $2.10 or +0.17%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, momentum is trending lower. A trade through $1220.70 will signal a resumption of the uptrend. A move through $1189.50 will change the main trend to down.

The minor trend is down. This is controlling the downside momentum. A trade through $1195.10 will indicate the selling is getting stronger. A move through $1212.70 will change the minor trend to up and shift momentum to the upside.

The main range is $1244.70 to $1167.10. Its retracement zone at $1205.90 to $1215.10 is resistance. This zone is also controlling the near-term direction of the market.

The minor range is $1167.10 to $1220.70. Its retracement zone at $1193.90 to $1187.60 is the primary downside target and potential support zone.

Daily Technical Forecast

Based on the early price action, the direction of the December Comex Gold futures contract is likely to be determined by trader reaction to the uptrending Gann angle at $1199.10.

A sustained move over $1199.10 will indicate the presence of buyers. If this move can create enough upside momentum then look for the rally to extend into the 50% level at $1205.90, followed by the downtrending Gann angle at $1210.70 and the Fibonacci level at $1215.10.

The Fib level at $1215.10 is the potential trigger point for an acceleration to the upside with the main top at $1220.70 the first target, followed by another downtrending Gann angle at $1227.70.

A sustained move under $1199.10 will signal the presence of sellers. This could lead to a test of the short-term retracement zone at $1193.90 to $1187.60. Inside this zone is the main bottom at $1189.50.

Be careful selling weakness under $1189.50 because of the Fib level at $1187.60.