Gold Price Futures (GC) Technical Analysis – October 2, 2017 Forecast

December Comex Gold futures spiked lower early in the session, but has since recovered a little from its low. Prices were driven lower by rising Treasury yields, a stronger U.S. Dollar and increased demand for higher risk assets. The downside pressure is likely to continue if these three factors continue to trend higher.

Daily Technical Analysis

The main trend is down according to the daily swing chart. The market is in no position to change the trend to up, but due to the steep sell-off, we could see a closing price reversal bottom.

The market is currently trading inside a major retracement zone bounded by $1286.80 to $1268.90. To some investors, this zone will represent value. However, there is going to have to be a shift in the fundamentals to encourage short-covering or aggressive counter-trend buying.

Daily Forecast

Based on the current price at $1276.60 and the earlier price action, the direction of the market today is likely to be controlled by the steep downtrending angle at $1285.10.

A sustained move under $1285.10 will indicate the presence of sellers. If the downside momentum continues then look for a drive into the main Fibonacci level at $1268.90.

Overcoming and sustaining a rally over $1285.10 will signal the presence of buyers. This could trigger a fast rally into the major 50% level at $1286.80.

Look for a change in momentum if buyers can overcome and sustain a rally over $1286.80.