Comex Gold Futures (GC) Technical Analysis – August 1, 2014 Forecast

Higher U.S. interest rates helped give the U.S. Dollar a boost, pressuring December Comex Gold prices on Thursday. Traders will be watching today’s U.S. Non-Farm Payrolls report because it will affect interest rates. If rates rise then investors should flock to the dollar which will pressure gold prices. A weak report, and rates will fall. This could underpin the gold market.

Traders are looking for the jobs report to show the economy added 231K new jobs. The unemployment rate is expected to remain unchanged at 6.1% and Average Hourly Earnings are expected to rise by 0.2%. The headline number and the Average Hourly Earnings should move the gold market. Higher-than-expected numbers will be bearish for gold. Lower numbers should trigger a strong short-covering rally.

Technically, the main trend is down on the daily chart. The main trend will turn up on a trade through $1314.60.

The main range is $1241.70 to $1374.50. The gold market is currently sitting inside its retracement zone at $1282.10 to 1294.60. Both of these levels should act as pivot today.

Uptrending Gann angle support moves to $1283.70 today. Taking out this angle and the Fib level at $1282.10 could trigger an acceleration to the downside. The daily chart indicates there is plenty of room to the downside with $1262.70 the next likely target.

The first resistance angle is at $1290.50. This is followed by $1302.50 and $1308.50.

Watch for an upside bias today on a sustained move over $1294.60. Taking out $1282.10 could lead to a $20 break.