Comex Gold

Gold Price Futures (GC) Technical Analysis – Strengthens Over $1352.40, Weakens Under $1349.40

Gold futures are trading higher late Tuesday, but nearly at the mid-point of today’s range. The market surged early in the session when Treasury yields and the U.S. Dollar weakened. Gains were limited, however, by a turnaround in the dollar after the Euro plunged in reaction to dovish comments from European Central Bank President Mario Draghi.

At 17:45 GMT, August Comex gold futures are trading $1349.90, up $6.90 or +0.52%. The high for the session is $1358.50.

Gains were further capped after a tweet by President Trump raised hopes of a trade deal between the United States and China. This news triggered a steep rise in demand for risky assets, while driving up Treasury yields.

Comex Gold
Daily August Comex Gold

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through $1362.20 will signal a resumption of the uptrend. The main trend will change to down when sellers take out $1323.60.

The minor trend is also up. A trade through $1336.60 will change the minor trend to down. This will shift momentum to the downside.

The short-term range is $1323.60 to $1362.20. Its retracement zone at $1349.40 to $1352.40 is acting like resistance.

On the downside, the long-term Fibonacci level at $1332.60 is support.

Daily Technical Forecast

Based on today’s price action and the current price at $1349.90, the direction of the August Comex gold futures contract into the close will be determined by trader reaction to the 50% level at $1349.40 and the Fibonacci level at $1352.40.

Bullish Scenario

Holding above $1349.40 will indicate the presence of buyers. Overcoming the uptrending Gann angle at $1350.60 will indicate the buying is getting stronger, but the true trigger point for an acceleration to the upside is $1352.40. If this move is able to generate enough upside momentum then look for a drive into last week’s high at $1362.20.

Bearish Scenario

A sustained move under $1349.40 will signal the presence of sellers. This could trigger a retest of the uptrending support angle at $1343.60.

Look for an acceleration to the downside if $1343.60 fails. This could trigger an acceleration to the downside with targets coming in at $1336.60 and $1333.60.

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.