Gold Price Futures (GC) Technical Analysis – August 22, 2017 Forecast

December Comex Gold futures are trading lower shortly before the cash market opening. The market is being pressured by a stronger U.S. Dollar which is up because of a weaker Euro. The market is reversing yesterday’s rally while holding inside yesterday’s range. This suggests investor indecision and impending volatility. Increased demand for higher risk assets is also pressuring gold.

Technical Analysis

The main trend is up according to the daily swing chart. However, momentum seems to be getting ready to shift to the downside.

A trade through $1306.90 will signal a resumption of the uptrend. A trade through $1272.70 will change the main trend to down.

Friday’s closing price reversal top is also signaling that the selling is greater than the buying at current price levels.

The short-term range is $1272.70 to $1306.90. Its retracement zone at $1289.80 to $1285.80 is currently being tested. Buyers are coming in to defend the trend. Sellers are trying to take out the zone in an effort to make $1306.90 a new main top and to shift momentum to the downside.

Forecast

Based on the current price at $1289.80 and the earlier price action, the direction of gold today is likely to be determined by trader reaction to the short-term 50% level at $1289.80.

A sustained move over $1289.80 will signal the presence of buyers. This could lead to a labored rally with potential targets coming in at $1292.70, $1297.10 and $1298.90.

Taking out $1298.90 will signal that the buying is getting stronger. This could lead to a surge into downtrending Gann angles at $1302.90 and $1304.90. The latter is the last potential resistance angle before the $1306.90 main top.

A sustained move under $1289.80 will indicate the presence of sellers. The next target is the Fib level at $1285.80, followed closely by the uptrending angle at $1282.70.

The angle at $1282.70 is the trigger point for an acceleration into a pair of uptrending angles at $1277.10 and $1273.00. This is followed by the main bottom at $1272.70.