Gold Price Futures (GC) Technical Analysis – September 27, 2017 Forecast

December Comex Gold futures are trading lower on Wednesday shortly before the regular session opening. A surge in the Greenback is helping to drive down foreign demand for dollar-denominated gold.

The dollar is being supported by the increased likelihood of a U.S. rate hike by December. On Tuesday, investors increased the chances a U.S. rate hike by the end of the year to as much as 70 percent, compared to less than 20 percent only a month ago after Fed Chair Janet Yellen made somewhat hawkish remarks.

Later today, we should see a reaction to the announcement of a tax plan by the Trump administration and Republicans in Congress. Traders will also get the opportunity to react to the latest data on Durable Goods.

Daily Technical Analysis

The main trend is down according to the daily swing chart. The downtrend was reaffirmed after sellers took out the previous main bottom at $1291.20. If the downside momentum continues then look for the selling to extend into the August 25 bottom at $1281.30.

The main trend will turn to up on a trade through $1317.10.

Daily Forecast

Based on the current price at $1292.30 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 uptrending angle at $1292.30.

A sustained move under $1292.30 will signal the presence of sellers. This could create enough downside momentum to drive gold into the main bottom at $1281.30. Taking out this bottom will reaffirm the downtrend and could trigger an acceleration into the long-term uptrending angle at $1278.10.

Holding above the angle at $1292.30 will indicate the return of buyers. This could trigger a rally into another uptrending angle at $1303.30. This is followed by a steep downtrending angle at $1310.70.

Watch the price action and read the order flow at $1282.30. Trader reaction to this angle will tell us if the sellers are increasing pressure or if buyers are trying to regain control.