Gold Price Futures (GC) Technical Analysis – September 8, 2017 Forecast

December Comex Gold futures are trading higher on Friday. The market followed through to the upside after yesterday’s strong rally, making the former top at $1353.00 a new support level. The weaker U.S. Dollar is helping to support dollar-denominated gold. Lower Treasury yields are behind the weakness in the dollar.

Gold could be supported throughout the day by growing tensions over the situation in North Korea. Some are saying the rogue nation may even test another nuclear weapon over the week-end. Finally, lower stocks may drive down demand for risky assets and increase demand for the safe haven gold market.

Technical Analysis

The main trend is up according to the daily swing chart. A sustained move over $1353.00 will reaffirm the uptrend. This could lead to an extension of the rally with potential resistance points and trigger points for upside breakouts at $1363.80, $1370.80, $1383.20 and $1392.60.

Forecast

Based on the current price at $1357.60 and the earlier price action, the direction of the gold market today will likely be determined by trader reaction to the support cluster at $1353.30 to $1353.00.

A sustained move over $1353.30 will signal the presence of buyers. This could create enough upside momentum to challenge the aforementioned previous tops.

A sustained move under $1353.00 will indicate the presence of sellers. Crossing to the weak side of this angle could trigger a break into the next uptrending angle at $1342.30.

The daily chart opens up to the downside under $1342.30 with the next target angles coming in at $1322.30 and $1317.30.

Basically, look for the upside momentum to continue on a sustained move over $1363.80. Investor sentiment should shift to the downside on a move through $1353.00.