Gold Price Futures (GC) Technical Analysis – November 10, 2017 Forecast
December Comex Gold futures are trading lower shortly before the regular session opening. Traders are reacting to an overnight spike in U.S. Treasury yields and a rebound in the U.S. Dollar. The market is being underpinned by concerns over the possible delay in U.S. tax reform.
Prices could rally if a drop in Treasury yields, a weaker U.S. Dollar and another plunge in U.S. equity markets sends investors into the safety of the gold market.
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Daily Technical Analysis
The main trend is down according to the daily swing chart. A trade through $1292.90 will change the main trend to up. If this move generates enough upside momentum then look for a possible surge into the next main top at $1308.40.
A trade through $1263.80 will signal a resumption of the downtrend with potential targets the October 6 bottom at $1262.80 and the August 8 bottom at $1257.10.
The main range is $1211.10 to $1362.40. Its retracement zone at $1286.80 to $1268.90 is currently being tested. Trader reaction to this zone will determine the longer-term direction of the market.
The short-term range is $1362.40 to $1262.80. If there is a change in trend then its retracement zone at $1312.60 to $1324.30 will become the primary upside target.
Daily Technical Forecast
Based on the current price at $1285.20 and the earlier price action, the direction of the gold market today is likely to be determined by trader reaction to the major 50% level at $1286.80.
A sustained move under $1286.80 will signal the presence of sellers. If the selling volume increases on the move, we could see a spike into the major Fibonacci level at $1268.90. This is followed by $1263.80, $1262.80 and $1257.10.
A sustained move over $1286.80 will indicate the presence of buyers. Taking out $1289.50 will make a new high for the week. This could lead to a test of the main top at $1292.90.
Overcoming $1292.90 will change the trend to up. If the buying volume increases on the move then look for a possible drive into the next main top at $1308.40, followed by a 50% level at $1312.60, another main top at $1317.10 and a Fibonacci level at $1324.30.
Volume is a concern today because of the U.S. bank holiday so be careful buying strength over $1286.80 and selling weakness under this level.