Comex Gold Futures (GC) Technical Analysis – August 24, 2016 Forecast

A weaker U.S. Dollar helped underpin December Comex Gold futures on Tuesday, but thin trading volume ahead of Fed Chair Janet Yellen’s speech on Friday helped kill the rally, leading to today’s early weakness. Concerns over the timing of the next Fed rate hike should help hold gold in range. This sideways price action should lead to a volatile move after Yellen’s speech sets the longer-term tone.

Technically, the main trend is up according to the daily swing chart. A trade through $1335.30 will turn the main trend to down while a move through $1364.30 will signal a resumption of the uptrend. Trading below the pair of retracement zones will cast a negative net on the market.

The main range is $1259.10 to $1384.40. Its retracement zone at $1321.80 to $1307.00 will be the primary downside target if sellers hit the market hard.

The intermediate range is $1384.40 to $1318.50. Its retracement zone at $1346.40 to $1339.80 is currently being tested.

The short-term range is $1374.20 to $1335.30. Its retracement zone at $1354.80 to $1359.30 is the primary upside target.

Based on the current price at $1340.90, the direction of the market today is likely to be determined by trader reaction to the intermediate pivot at $1339.80.

A sustained move over $1339.80 will give gold an upside bias, however, buyers should expect a labored market because of numerous retracement levels.

A sustained move under $1339.80 will signal the presence of sellers, however, don’t expect an acceleration to the downside unless $1335.30 is taken out with conviction. In that case, the next downside targets become $1321.80 to $1318.50.