Gold Price Futures (GC) Technical Analysis – October 17, 2018 Forecast
Gold futures are trading higher at the mid-session after reversing earlier weakness. Buyers are reacting to weak demand for higher risk assets, making gold a more attractive safe-haven asset. Treasury yields are also trading lower, however, the U.S. Dollar remains firm, which may be limiting gains in the dollar-denominated gold market.
At 1431 GMT, December Comex Gold is trading $1231.80, up $0.80 or +0.07%.
Daily Technical Analysis
The main trend is up according to the daily swing chart. However, the current uptrend has stalled inside a retracement zone. Taking out $1236.90 will reaffirm the uptrend with $1244.70 the next main top target. The trend is safe. It will turn down on a move through $1184.30.
The market is currently trading inside a 50% to 61.8% retracement zone, bounded by $1222.70 and $1235.80.
The short-term retracement zone support is $1210.60 to $1204.40.
The next retracement zone on the upside is $1246.30 to $1264.90. This zone is potential resistance.
Daily Technical Forecast
Based on the early trade, the direction of the December Comex Gold futures contract is likely to be determined by trader reaction to the Fib level at $1235.80 and the 50% level at $1222.70.
Taking out $1235.80 will signal the presence of buyers. Overcoming $1236.90 will indicate the buying is getting stronger. This could trigger a rally into a downtrending Gann angle at $1242.70. Taking out this angle will likely lead to a test of the main top at $1244.70, followed by the main 50% level at $1246.30.
The 50% level at $1246.30 is a potential trigger point for an acceleration to the upside.
A break through $1222.70 will indicate the presence of sellers. This could trigger an acceleration to the downside with the first target a support cluster at $1210.60 to $1210.30.
This article was originally posted on FX Empire
More From FXEMPIRE:
Bitcoin and Ethereum Price Forecast – BTC Prices Consolidate
Gold Price Futures (GC) Technical Analysis – October 17, 2018 Forecast
Global Shares Rise as Strong Reporting Has Returned Optimism to Markets
E-mini S&P 500 Index (ES) Futures Technical Analysis – October 17, 2018 Forecast
Crude Oil Price Update – Trading on Weak Side of Retracement Zone Ahead of EIA Report
Gold Price Prediction – Soft Housing Data is Offset by Weak UK Inflation Keeping Gold Steady