Comex Gold Futures (GC) Technical Analysis – August 30, 2016 Forecast

December Comex Gold futures are drifting sideways-to-lower on light volume as investors continue to digest Friday’s hawkish comments from Fed Chair Janet Yellen and Fed Vice Chair Stanley Fischer. Their comments are helping to underpin the U.S. Dollar while putting a lid on gold prices.

Most major gold traders are on the sidelines ahead of Friday’s U.S. Non-Farm Payrolls report. Since the pace of the Fed’s rate hikes is data dependent, the jobs report is seen as a key measure of the strength of the U.S. labor market, and could reinforce the hawkish messages from Yellen and Fischer.

Technically, the main trend is down according to the daily swing chart. Monday’s closing price reversal bottom has temporarily stopped the price slide. A trade through $1328.50 will confirm the chart pattern and could change momentum to up. A move through $1317.20 will signal a resumption of the downtrend.

Based on the current price at $1323.40, the first upside objective today is a downtrending angle at $1334.20. Overcoming the long-term uptrending angle at $1335.00 will indicate the buying is getting stronger. This could trigger a further rally into the short-term retracement zone at $1340.00 to $1346.30.

The lack of follow-through to the upside will signal the presence of sellers. This could generate enough downside momentum to challenge the $1317.20 low. This price is a possible trigger point for a break into a long-term uptrending angle at $1305.10.

Watch the price action and read the order flow at $1328.50 today. Trader reaction to this price will tell us if the buyers or sellers are in control.