Gold Price Futures (GC) Technical Analysis – September 13, 2017 Forecast

December Comex Gold is trading higher shortly before the regular session opening. The market has been under pressure this week due to a sudden jump in U.S. Treasury yields and increased demand for U.S. equities. These two assets classes are likely to continue to drive the price action today.

Additionally, gold investors will have the opportunity to react to the latest Producer Price Index data for August. Stronger than expected numbers could put pressure on gold. However, both gains and losses will be limited because of Thursday’s Consumer Inflation report.

Technical Analysis

The main trend is up according to the daily swing chart. A move under the nearest retracement zone will shift momentum to the downside.

A trade through $1362.40 will signal a resumption of the uptrend. This could lead to a test of the September 22, 2016 main top at $1363.80 and the September 6, 2016 main top at $1370.80.

A trade through $1302.30 will change the main trend to down.

The short-term range is $1302.30 to $1362.40. Its retracement zone is $1332.40 to $1325.30. This zone stopped the selling on Tuesday.

The intermediate range is $1281.30 to $1362.40. Its retracement zone at $1321.90 to $1312.30 is the primary downside target.

Forecast

Based on the current price at $1337.30 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 steep downtrending angle at $1338.40.

A sustained move over $1338.40 will indicate the presence of buyers. This could trigger a surge into the next downtrending angle at $1350.40. This price is also the trigger point for an acceleration into $1356.40.

A sustained move under $1338.40 will signal the presence of sellers. This could lead to a labored break into an uptrending angle at $1334.30, followed by a 50% level at $1332.40 and another uptrending angle at $1329.30. Additional support is a Fib level at $1325.30 and a 50% level at $1321.90.

Expect a reaction from the PPI number at 1230 GMT but gains and losses will be limited because of Thursday’s CPI report.