Comex Gold Price Futures (GC) Technical Analysis – June 6, 2017 Forecast

August Comex Gold futures is trading at its highest level since April 18 and in a position to test its last main top at $1300.30. The market is being supported by a weaker U.S. Dollar and Asian stock markets. Concerns over the outcome of the U.K. elections, the European Central Bank meeting and the testimony of former FBI Director James Comey are also helping to underpin gold prices.

Those three events, which take place on Thursday, June 8, are helping to boost the safe-haven appeal of gold.

Technical Analysis

The main trend is still down according to the daily swing chart, but momentum is trending higher. The trend will turn up on a trade through $1300.30. If trader can take this level out with conviction, the market could spike into its November 9 top at $1345.20.

We could also see a move through $1300.30 with no follow-through. This will likely occur if PM Teresa May wins the UK election and Comey offers nothing that suggests President Trump obstructed justice. You have to be careful playing a breakout over $1300.30 because of the distance from the last main bottom. Gold is also inside the window of time for a potentially bearish closing price reversal top.

Forecast

Based on the current price at $1293.60 and the earlier price action, the direction of the gold market the rest of the session is likely to be determined by trader reaction to the steep uptrending angle at $1293.80.

A sustained move over $1293.80 will signal the presence of buyers. This could create the upside momentum needed to challenge the main top at $1300.30.

The inability to overcome $1293.80 will indicate the presence of sellers. This could drive gold back into a downtrending angle at $1291.60.

The daily chart is open to the downside under $1291.60. Taking out this price could trigger an acceleration into the next downtrending angle at $1282.80. The market will open up further under this angle.

On an intraday basis, look for the strong upside bias to continue on a sustained move over $1293.80 and for a down side bias to begin on a sustained move under $1291.60.