Comex Gold

Gold Price Futures (GC) Technical Analysis – Needs to Overcome $1834.70 – $1854.60 RT Zone to Extend Rally

Gold futures are edging lower early Friday, but the precious metal remains in a position to post its fourth consecutive weekly gain after U.S. Federal Reserve Chairman Jerome Powell dampened investor fears of a faster tightening of monetary policy earlier in the week. Despite this week’s gains, advances have been limited by tentative buying and a firm U.S. Dollar.

At 07:37 GMT, August Comex gold futures are trading $1823.20, down $5.80 or -0.32%.

Traders seem to be biding their time for the next major move ahead of the July 27-28 Federal Reserve monetary policy meeting. However, I believe traders should watch the Treasury yields very closely. If the 10-year yield settles under the July 8 low at 1.30%, gold prices could spike higher at least over the near-term.

Daily August Comex Gold

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart, however, momentum is trending higher. The main trend will change to up on a move through the pair of main tops at $1906.90 and $1919.20. A trade through $1750.10 will signal a resumption of the downtrend.

The minor trend is up. This is controlling the momentum. A trade through $1791.00 will change the minor trend to down. This will also shift momentum to the downside.

The first minor range is $1791.00 to $1835.00. Its 50% level at $1813.00 is potential support.

The second minor range is $1750.10 to $1835.00. Its 50% level at $1792.60 is also potential support.

The main range is $1678.40 to $1919.20. Its retracement zone at $1798.80 to $1770.40 is the best support. It is controlling the near-term direction of the market.

The short-term range is $1919.20 to $1750.10. Its retracement zone at $1834.70 to $1854.60 is resistance. This area stopped the rally on Thursday at $1835.00.

The long-term resistance zone is $1899.20 to $1951.30.

Daily Swing Chart Technical Forecast

The direction of the August Comex gold futures contract on Friday is likely to be determined by trader reaction to $1834.70.

Bearish Scenario

A sustained move under $1834.70 will indicate the presence of sellers. If this move creates enough downside momentum then look for the selling to possibly extend into the first minor pivot at $1813.00.

If $1813.00 fails to hold then look for the selling to possibly extend into the support cluster formed by a pair of 50% levels at $1798.80 and $1792.60, and a minor bottom at $1791.00.

Bullish Scenario

A sustained move over $1834.70 will signal the presence of buyers. Overtaking this level could trigger an acceleration into $1854.60. This is a potential trigger point for an acceleration to the upside with the next major target coming in at $1899.20.

For a look at all of today’s economic events, check out our economic calendar.

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.