Gold Price Futures (GC) Technical Analysis – August 15, 2017 Forecast

December Comex Gold futures are trading lower as investors continue to liquidate their safe have positions. Increased demand for higher risk assets is also putting pressure on gold. A rise in U.S. Treasury yields is helping to boost the U.S. Dollar, which is making dollar-denominated gold a less-attractive asset.

Today, investors will get the opportunity to react to the U.S. retail sales report. This should have an influence on U.S. Treasury yields and consequently the dollar and gold prices.

Technical Analysis

The main trend is up according to the daily swing chart. However, momentum is starting to shift to the downside.

A trade through $1298.10 will signal a resumption of the uptrend. A move through $1257.10 will change the main trend to down.

The short-term range is $1257.10 to $1298.10. Its retracement zone at $1277.60 to $1272.80 is the first downside target. This is followed by a major retracement zone at $1269.40 to $1258.30.

Forecast

Based on the current price at $1278.10 and the earlier price action, the direction of the gold market the rest of the session will be determined by trader reaction to a pair of Gann angles at $1277.60 and $1277.10.

A sustained move over $1277.60 will signal the return of buyers. This may generate enough upside momentum to drive the market back into a downtrending angle at $1290.10. This is followed by downtrending Gann angles at $1294.10 and $1296.10. The latter is the last potential resistance angle before $1298.10.

A sustained move under $1277.10 will indicate the presence of sellers. This could lead to a labored break with potential targets at $1272.80, $1269.40 and $1267.10.

The major uptrending support angle today comes in at $1263.10.

Look for a bullish tone to develop on a sustained move over $1277.60 and a bearish tone to develop on a sustained move under $1277.10.