Comex Gold Futures (GC) Technical Analysis – August 3, 2015 Forecast

December Comex Gold futures posted a volatile move on Friday. The outside move, higher close suggests there may be a slight bias to the upside developing. The six days of consolidation suggest impending volatility.

Traders are likely waiting for more guidance from the U.S. Dollar before making their next move. The dollar will be getting its direction from the Bank of England on Thursday and the U.S. Non-Farm Payrolls report on Friday.

The close over the long-term downtrending angle at $1083.30 also gives the market a slight upside bias.

The short-term range is $1073.70 to $1104.90. Its pivot is $1089.30. Closing over this level also signals the presence of buyers.

Let’s break it down. The first angle to watch is an uptrending angle at $1097.70. A sustained move over this angle will indicate that buyers are coming in to support the market. This could create enough upside momentum to challenge a steep uptrending angle at $1121.70.

The main range is $1207.30 to $1073.70. Its retracement zone at $1140.50 to $1156.30 is the primary upside target. A downtrending angle passes through this zone at $1145.30, making it a valid upside target also.

The inability to overcome $1097.70 will indicate that sellers are defending the upside. Crossing to the weak side of the pivot at $1089.30 will indicate the selling is getting stronger.

Breaking under the uptrending angle at $1085.70 and the downtrending angle at $1083.30 will put the market in an extremely weak position. The next target is an uptrending angle at $1079.70. This is the last major uptrending angle before the $1073.70 main bottom.

The early direction today will be determined by trader reaction to $1097.70. The main determinant of the direction today will be trader reaction to the pivot at $1089.30.