Comex Gold Futures (GC) Technical Analysis – August 5, 2015 Forecast

December Comex Gold futures closed higher on Tuesday as buyers came in to defend the bottom at $1073.70. The rally wasn’t enough to change the trend, but it did drive the market to the strong side of a short-term pivot.

The seven days of consolidation suggest trader indecision. Traders are likely waiting for some clarity from the Fed. Since this is likely to come after the release of the U.S. Non-Farm Payrolls report on Friday, we could see further consolidation over the next couple of days. The good thing about consolidations is that it leads to volatility. And volatility could be your friend.

The main trend is down according to the daily swing chart. However, the market isn’t even close to changing the trend to up. It is in a position to trigger a sizable short-covering rally.

The short-term range is $1073.70 to $1104.90. Its 50% or pivot is $1089.30. This price is controlling the short-term direction of the market.

A sustained move over the pivot at $1089.30 and the uptrending angle at $1089.70 will give gold an upside bias. This could create enough upside momentum to trigger a rally into the next uptrending angle at $1105.70. A move through this angle will also put the market on the strong side of the last minor top at $1104.90. The daily chart indicates there is plenty of room to rally over this level with potential targets coming in at $1137.70 and $1140.50. The low volume, however, is likely to prevent this move.

A sustained move under $1189.30 could trigger a break into an uptrending angle at $1081.70. This angle stopped the break on Tuesday. The next target under this angle is $1077.70. This is the last major angle before the $1073.70 main bottom.

There is no identifiable support under $1073.70 until $990.00.