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Gold Price Futures (GC) Technical Analysis – September 18, 2017 Forecast

James Hyerczyk

December Comex Gold futures are trending lower on Monday shortly before the regular session opening. Prices fell to their lowest level in over two weeks as the dollar and equities rallied. Gold prices have been under pressure lately with investors dismissing geopolitical risks and instead focusing on the possibility of rate hikes from the European Central Bank and the U.S. Federal Reserve.

As of Friday’s close, Fed funds futures implied traders saw a 1.4 percent chance of a rate hike in September and a 53 percent chance of a December rate hike, according to CME Group’s FedWatch tool.

Daily December Comex Gold

Daily Technical Analysis

The main trend is up according to the daily swing chart, however, momentum has been trending lower since September 8. Today’s price action took out $1319.50, negating the potentially bullish closing price reversal bottom. The main trend will change to down on a trade through $1302.30.

The main range is $1281.30 to $1362.40. Gold is currently testing its retracement zone at $1321.90 to $1312.30. Since the main trend is up, value-seeking buyers may show up on a test of this zone.

Tomorrow will be the seventh day down so investors have to be prepared for a potentially bullish closing price reversal bottom.


Daily Forecast

Based on the current price at $1315.60 and the intraday momentum, it looks like sellers want to test the price cluster formed by the Fibonacci level at $1312.30, and the uptrending angles at $1311.30 and $1309.20. Watch for a technical bounce on a test of $1312.30 to $1309.20.

The daily chart starts to open up to the downside under $1309.20 with the next target the min bottom at $1302.30. This is followed by another uptrending angle at $1296.30.

The key upside target is the 50% level at $1321.90. Overcoming this level could trigger a huge short-covering rally with $1338.40 the next target.

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