Gold Price Futures (GC) Technical Analysis – September 19, 2017 Forecast

December Comex Gold futures are trading unchanged and in a tight range shortly before the regular session opening. Traders are watching U.S. Treasury yields, the U.S. Dollar and demand for higher risk assets.

Gold will continue to feel downside pressure if U.S. Treasury yields and stock markets continue to rise. Following the seven day decline, the market may be ripe for profit-taking and a short-covering rally especially ahead of the start of the Federal Open Market Committee’s two-day meeting.

Daily Technical Analysis

The main trend is up according to the swing chart. However, momentum has been trending lower since September 8.

The main trend will change to down on a trade through $1302.30. This is followed by another main bottom at $1281.30.

The main range is $1281.30 to $1362.40. Its retracement zone is $1321.90 to $1312.30. The market is currently trading on the weak side of this retracement zone, giving it a downside bias.

Today is also the seventh day down from the last main top. This puts the market in the window of time for a potentially bullish closing price reversal bottom.

Daily Forecast

Based on the current price at $1311.20 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 a pair of uptrending Gann angles.

A sustained move under the long-term uptrending angle at $1311.10 will indicate the presence of sellers. This could create the downside momentum needed to challenge the next main bottom at $1302.30. This is followed by an uptrending angle at $1291.30 and another main bottom at $1281.30.

A sustained move over the short-term uptrending angle at $1313.30 will signal the presence of buyers. The next target is the main 50% level at $1321.90. Overtaking this level could trigger an acceleration into a steep downtrending angle at $1334.40.

Basically, look for a bullish tone to develop on a sustained move over $1313.30 and for a bearish tone on a sustained move under $1311.10.

Also watch for a possible closing price reversal bottom.