Gold Price Futures (GC) Technical Analysis – August 21, 2017 Forecast

December Comex Gold futures are edging higher shortly before the regular session opening. Helping to support the market is a slightly weaker U.S. Dollar and lower demand for higher-risk assets. Traders are also watching military exercises in South Korea while looking ahead to this week’s central bankers’ symposium in Jackson Hole, Wyoming.

Technical Analysis

The main trend is up according to the daily swing chart. However, momentum shifted to the downside with the formation of the closing price reversal top on Friday.

A trade through $1306.90 will negate the reversal top and signal a resumption of the uptrend. Taking out the main top at $1307.00 could launch an acceleration to the upside. The main trend will turn to down on a trade through $1272.70.

The short-term range is $1272.70 to $1306.90. Its retracement zone is $1289.80 to $1285.80. This zone is new support. It was successfully tested earlier today.

If the trend changes to down then the major retracement zone at $1270.30 to $1259.00 will become the primary downside target.

Forecast

Based on the current price at $1293.50 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 $1293.10.

A sustained move over $1293.10 will indicate the presence of buyers. This will indicate investors are trying to claw back some of Friday’s loss.

A sustained move under $1293.10 will signal the presence of sellers. This could lead to a break into the short-term 50% level at $1289.80, followed by the uptrending angle at $1288.70.

A failure to hold $1288.70 could drive the market into the short-term Fibonacci level at $1285.80. This is also the trigger point for a further break into the uptrending angle at $1280.70. This is the last major uptrending angle before the $1272.70 main bottom.