Comex Gold Futures (GC) Technical Analysis – August 29, 2016 Forecast

December Comex Gold futures posted a volatile two-sided trade on Friday before closing slightly better as investors responded to comments from Fed Chair Janet Yellen and Fed Vice Chair Stanley Fischer. Yellen provided most of the fodder for a two-sided trade when she said the economy was strengthening while failing to indicate a rate hike was imminent. Fischer triggered a late session sell-off on Friday by saying that two rate hikes were possible.

Monday’s price action will be guided by the movement of the U.S. Dollar.  It will be influenced by a spillover reaction to Friday’s news and fresh economic data. Traders will get a chance to react to the latest Core PCE Price Index data and Personal Spending.

Technically, the main trend is down according to the daily swing chart. The trend will turn up on a trade through $1364.30. A trade through the main bottom at $1318.50 will signal a resumption of the downtrend.

On the upside, the first resistance is $1333.00. This is followed by a downtrending angle at $1336.20 and an uptrending angle at $1349.10.

On the downside, the first target is last week’s low at $1321.00. The daily chart indicates there is room to the downside with the next targets an uptrending angle at $1304.10 and the main 50% level at $1296.70.

We’re looking for the downside pressure to continue today if the U.S. Dollar maintains its strength. The key level to watch is $1321.00. Taking it out with conviction will mean that sellers aren’t afraid to sell weakness.