Gold Price Futures (GC) Technical Analysis – August 22, 2018 Forecast

Gold futures are edging higher shortly before the New York opening on Wednesday. Falling Treasury yields and a weaker U.S. Dollar are helping to give the market a boost. Shorts continue to be squeezed which could add to the volatility. Trading is a little tentative as the market enters a major retracement zone and ahead of today’s release of the latest Fed minutes.

At 1152 GMT, December Comex Gold futures are trading $1206.60, up $6.60 or +0.54%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. However, momentum has been trending higher since the massive reversal on August 16.

The main trend will change to up on a trade through $1244.70. A move through $1167.10 will signal a resumption of the downtrend.

The main range is $1244.70 to $1167.10. Its retracement zone at $1205.90 to $1215.10 is currently being tested. This zone is controlling the near-term direction of the market.

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Daily Technical Forecast

Based on the current price at $1206.60, the direction of the December Comex Gold market is likely to be determined by trader reaction to the 50% level at $1205.90.

A sustained move over $1205.90 will indicate the buying is getting stronger. This could trigger an acceleration to the upside with the next target the Fibonacci level at $1215.10. This is followed by a downtrending Gann angle at $1222.70.

A sustained move under $1205.90 will signal the presence of sellers. The first target area is a pair of Gann angles at $1200.70 and $1199.10. This area provided support earlier in the session.

Look out to the downside if $1199.10 fails as support. Taking out this Gann angle with conviction could drive the market to the next uptrending Gann angle at $1183.10.

The retracement zone at $1205.90 to $1215.10 is a very critical area. Short-sellers are going to try to form a secondary lower top. Aggressive counter-trend buyers are going to try to blast through this zone.