Gold Price Futures (GC) Technical Analysis – September 22, 2017 Forecast

December Comex gold futures are trading higher shortly after the opening on Friday. The market is trading inside yesterday’s range which suggests investor indecision and impending volatility.

Today’s early rally is likely short-covering in response to a threat by North Korea to test a nuclear weapon in the Pacific Ocean. Investors are moving money into lower-yielding assets as a precaution, making gold an attractive investment today.

If investors shrug off the North Korean news then the direction of the gold market will be determined by trader reaction to the movement in U.S. Treasury yields and the stock market.

Daily Technical Analysis

The main trend is down according to the daily swing chart. The market isn’t close to turning the main trend back up, but it is in the window of time to produce a potentially bullish closing price reversal bottom. This won’t change the trend, but it could lead to a 2 to 3 day retracement rally. If the selling pressure continues then look for a possible break into the $1281.30 main bottom.

The main range is $1281.30 to $1362.40. If there is a rally then its 50% level at $1321.90 will become the primary upside target.

Daily Forecast

Based on the current price at $1298.50 and the earlier price action, the direction of the gold market today is likely to be determined by trader reaction to the uptrending angle at $1300.30.

A sustained move under $1300.30 will indicate the presence of sellers. This could trigger a break back into another uptrending angle at $1290.80. This is the last potential support angle before the $1281.30 main bottom.

A sustained move over $1300.30 will signal the presence of buyers. The daily chart indicates there is plenty of room to the upside over this angle with potential targets clustered at $1317.10, $1319.30, $1321.90 and $1322.10.

Watch the price action and read the order flow at $1300.30 all session. Trader reaction to this angle will tell us if the sellers are still in control, or if control has shifted to the bullish traders.