Gold Bars and Dollar

Gold Price Futures (GC) Technical Analysis – November 5, 2018 Forecast

A stronger U.S. Dollar is putting pressure on gold prices on Monday. A sell-off in the Euro is largely responsible for the dollar’s strength. General nervousness ahead of Tuesday’s mid-term elections is also weighing on prices. Investors could be buying the dollar as a hedge against unfavorable election results which traders feel will be a victory by the Democrats. A stable, low-volatility stock market is also capping gains in gold.

At 1319 GMT, December Comex Gold is trading $1230.60, $2.70 or -0.22%.

Comex Gold
Daily December Comex Gold

Daily Technical Analysis

The main trend is up according to the daily swing chart, however, upside momentum appears to be slowing with the possibility of a secondary lower top forming.

A trade through $1246.00 will signal a resumption of the uptrend. The trend will change to down on a trade through $1184.30.

The minor trend is also up. A trade through $1213.40 will change the minor trend to down. This will also shift momentum to the downside.

Retracement zones are also controlling the price action.

On the upside, retracement zone resistance comes in at $1235.80 to $1246.30. This zone stopped the rally on Thursday at $1239.30.

The short-term range is $1246.00 to $1213.40. Its retracement zone at $1229.70 to $1233.50 is currently being tested.

On the downside, the first target is a 50% level at $1222.70. This is followed by another retracement zone at $1215.10 to $1207.90. This zone stopped the selling at $1213.40 last Thursday.

Daily Technical Forecast

Based on the early price action, the direction of the December Comex Gold market the rest of the session is likely to be determined by trader reaction to the short-term 50% level at $1229.70.

A sustained move under $1229.70 will indicate the selling is getting stronger. This could trigger an acceleration to the downside with the next target $1222.70.

A sustained move over $1229.70 will signal the return of buyers. However, this could trigger a rally into a cluster of resistance at $1233.50, $1234.00 and $1235.80.

The trigger point for an acceleration to the upside is $1235.80. This is followed by a downtrending Gann angle at $1240.00.

Watch the price action and read the order flow at $1229.70. Taking out this level with conviction could trigger a steep sell-off.

Published by

James Hyerczyk

James A. Hyerczyk has worked as a fundamental and technical financial market analyst since 1982. His technical work features the pattern, price and time analysis techniques of W.D. Gann.