Comex Gold Price Futures (GC) Technical Analysis – June 5, 2017 Forecast
August Comex Gold futures are trading higher shortly before the regular session opening. With the U.S. Dollar trading slightly higher, the market is probably getting some support from buyers reacting to the geopolitical events over the week-end. We could also be seeing some speculative or hedge buying ahead of this week’s elections in the U.K.
The main trend is down according to the daily swing chart, but momentum is trending higher. The trend will turn up on a trade through the last main top at $1300.30.
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The main range is $1300.30 to $1217.80. Gold is currently trading on the strong side of its retracement zone at $1268.80 to $1259.10. These two levels are new support.
Based on the current price at $1283.60, the direction of the gold market today is likely to be determined by trader reaction to the downtrending angle at $1283.30.
A sustained move under $1283.30 will indicate the presence of sellers. The daily chart is wide open to the downside so if heavy selling volume hits the market, we could see an acceleration into the Fibonacci level at $1268.80.
Overtaking the angle at $1283.30 and sustaining the move will signal the presence of buyers. This could create enough upside momentum to trigger an acceleration into a pair of angles at $1289.80 and $1291.80. Crossing to the strong side of these angles will put gold in a bullish position with $1300.30 the next major upside target.
Watch the price action and read the order flow at $1283.30 all session. Trader reaction to this angle will tell us if the buying is getting stronger, or if sellers are retaking control.