Comex Gold Futures (GC) Technical Analysis – August 18, 2015 Forecast

December Comex Gold futures are trading flat shortly before the regular session opening. The market appears to be consolidating before Wednesday’s U.S. consumer inflation report and the release of the latest Fed minutes. The sideways trading action suggests impending volatility. The trigger for a volatile move is likely to be Wednesday’s reports.

The main trend is down according to the daily swing chart. Last week’s closing price reversal top at $1126.30 has slowed down the counter-trend momentum.

The first downside target is an uptrending angle at $1107.70. The short-term range is $1073.70 to $1126.30. Its retracement zone at $1100.00 to $1093.80 is the primary downside target. This is followed by another uptrending angle at $1090.70.

The first target on the upside is a long-term downtrending angle at $1123.30. Overtaking this angle will signal the presence of buyers. The first target is the reversal top at $1126.30.

A trade through $1126.30 will not change the trend, but it will negate the closing price reversal top. This could trigger an acceleration to the upside with the next target a resistance cluster at $1140.50 to $1141.70.

Gold is currently trading inside a triangle chart pattern. Look for a bullish tone to develop on a sustained move over $1123.30 and a bearish tone to develop on a sustained move under $1107.70. Start watching for signs of impending volatility. The triangle ends on August 23 – 24. The market is either going to be on the bullish side of the chart pattern or the bearish side at that time.