Gold Price Futures (GC) Technical Analysis – August 23, 2017 Forecast

December Comex Gold futures are trading higher shortly before the regular session opening. Volume is below average and the market is trading inside yesterday’s range, suggesting investor indecision and impending volatility.

Technical Analysis

The main trend is up according to the daily swing chart. However, momentum has been trending lower since the closing price reversal top at $1306.90 on August 18.

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

The short-term range is $1272.70 to $1306.90. Its retracement zone at $1289.80 to $1285.80 is providing support. Taking out this zone will mean the downside momentum is increasing.

If the trend changes to down, the next target is the major retracement zone at $1269.40 to $1258.30.

Forecast

Based on the current price at $1293.20 and the earlier price action, the direction of the gold market 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 indicate the presence of buyers. This could create enough upside momentum to challenge the downtrending angle at $1294.90. This angle is the trigger point for an acceleration into the next pair of downtrending angles at $1300.90 and $1303.90. The latter is the last potential resistance angle before the $1306.90 main top.

A sustained move under $1289.80 will signal the presence of sellers. This could drive gold into the Fibonacci level at $1285.80, followed closely by an uptrending angle at $1284.70.

The angle is the trigger point for an acceleration to the downside with a pair of uptrending angles at $1279.10 and $1275.10 the next likely targets. These are the last potential support angles before the $1272.70 main bottom.

Look for a bullish tone all session if buyers come in to defend $1289.80. Look for a bearish tone to develop if $1284.70 fails as support.