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.
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.
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.
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.