Gold futures are trading nearly flat shortly after the mid-session on Wednesday, basically mirroring the price action in U.S. Treasury yields, however, a rise in the U.S. Dollar against a basket of major currencies is likely capping gains. Investors are now looking to U.S. gross domestic product, jobless claims and durable goods data on Thursday.
At 17:29 GMT, August Comex gold futures are trading $1903.70, up $3.20 or +0.17%.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. A trade through the intraday high at $1903.70 will signal a resumption of the uptrend. The main trend will change to down on a move through $1810.70.
The minor trend is also up. A trade through $1854.40 will change the minor trend to down. This will also shift momentum to the downside.
The market is currently testing a long-term retracement zone at $1899.20 to $1951.30.
The first minor range is $1810.70 to $1915.60. Its 50% level at $1857.20 is the nearest support.
The second minor range is $1756.80 to $1915.60. Its 50% level at $1836.20 is additional support.
Daily Swing Chart Technical Forecast
The direction of the August Comex gold futures contract into the close is likely to be determined by trader reaction to $1900.50.
A sustained move over $1900.50 will indicate the presence of buyers. If this move generates enough upside momentum into the close then look for an attempted breakout over the intraday high at $1915.60.
Holding above $1900.50 will also put the market on the bullish side of the long-term 50% level at $1899.20.
The ultimate objective is the long-term Fibonacci level at $1951.30, but as I wrote earlier, the market is currently trading inside a long-term 50% to 61.8% retracement zone, which is often resistance.
A sustained move under $1900.50 will signal the presence of sellers. Crossing to the weak side of the long-term 50% level at $1899.20 will indicate the selling is getting stronger. The next downside target is $1885.00, followed by the minor pivot at $1857.20 and the minor bottom at $1857.20.