Comex Gold Futures (GC) Technical Analysis – August 19, 2015 Forecast

December Comex Gold futures are trading higher during the pre-market session as investors prepare for the release of the U.S. consumer inflation report at 8:30 a.m. ET and the latest Fed minutes at 2:00 p.m. ET. Both are expected to create volatility due to their impact on the Fed’s interest rate decision.

Earlier in the session, gold rallied through yesterday’s high, making $1108.50 a new minor bottom. The main trend is down. A trade through $1126.30 will change the main trend to up.

The short-term range is $1126.30 to $1108.50. Its 50% level or pivot at $1117.40 is controlling the short-term direction of the market.

A sustained move over $1117.40 signals the presence of buyers. The first target is a long-term downtrending angle at $1121.30. The market is currently testing this angle. Crossing to the bullish side of this angle will also be a sign of strength.

The main range is $1207.30 to $1073.70. If the rally continues through $1126.30 then look for a possible acceleration into the 50% level at $1140.50. Overcoming the uptrending angle at $1145.70 will put the market in an extremely strong position with the Fibonacci level at $1156.30 the next target.

A sustained move under $1117.40 will signal the presence of sellers. The first downside target is an uptrending angle at $1109.70. This angle has been guiding the market higher since July 24.

If $1109.70 fails then look for a break into the 50% level at $1100.00. This is followed by a tight support cluster at $1093.80 to $1091.70. The next angle comes in at $1082.70. This is the last major angle before the 1073.70 main bottom.

Based on the current price at $1121.60, the direction of the market on the opening will be determined by trader reaction to the downtrending angle at $1121.30.

The daily chart shows the market has a clear shot at $1140.50 on the upside if buyers take control. Look for a possible break into $1100.00 if sellers gain control.

The 50% level at $1117.40 is also expected to act like a pivot all session. Read the order flow and price action at this price to determine if the buyers or sellers have the upper hand.