Gold

Gold Price Futures (GC) Technical Analysis – Bearish Under $1899.20, Bullish Over $1900.50

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 August Comex Gold

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.

Bullish Scenario

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.

Bearish Scenario

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.

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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.