Gold Price Futures (GC) Technical Analysis – September 25, 2018 Forecast

December Comex Gold futures are trading slightly higher on Tuesday, but on low volume. The market is trading inside yesterday’s range and Friday’s wide range, indicating investor indecision and impending volatility. Traders seem a little reluctant to take on new positions ahead of the Fed’s interest rate decision and monetary policy statement on Wednesday.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through $1215.80 will change the main trend to up. A move through $1196.00 will signal a resumption of the downtrend.

The main range is $1244.70 to $1167.10. Its retracement zone at $1205.90 to $1215.10 is the primary upside target.

The short-term range is $1167.10 to $1220.70. Its retracement zone at $1193.90 to $1187.60 is support.

The gold market has been straddling these zones since mid-August as investors wait for guidance.

Daily Technical Forecast

Based on Tuesday’s early price action, the direction of the December Comex Gold market today is likely to be determined by trader reaction to the 50% level at $1205.90.

A sustained move under $1205.90 will indicate the presence of sellers. If this move creates enough downside momentum then look for a possible break into a support cluster at $1194.10 to $1193.90.

A sustained move over $1205.90 will signal the presence of buyers. If this move can generate enough upside momentum then look for a possible surge into $1215.10 to $1215.80.

The set-up is there for expanded moves, however, light volume may be preventing the market from moving substantially in either direction.