Gold Price Futures (GC) Technical Analysis – August 23, 2018 Forecast

Gold futures are trading lower shortly after the cash market opening. The market is being pressured by a stronger U.S. Dollar. The dollar is being supported by expectations of higher interest rates based on yesterday’s hawkish Fed minutes and flight to safety buying fueled by retaliatory tariffs on the United States by China.

At 1205 GMT, December Comex Gold is trading $1196.20, down $7.10 or -0.59%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through $1244.70 will change the main trend to up. A move through $1167.10 will signal a resumption of the downtrend.

The minor trend is also down. A new minor top has formed at $1208.40. A trade through this price will change the minor trend to up. This will also shift momentum to the upside.

The main range is $1244.70 to $1167.10. Its retracement zone at $1205.90 to $1215.10 is resistance. It stopped the rally on Wednesday at $1208.40. It is also controlling the near-term direction of the market.

The minor range is 1167.10 to $1208.40. Its retracement zone at $1187.80 to $1182.90 is the first downside target. Watch for a technical bounce on the first test of this zone. Aggressive counter-trend buyers are going to try to form a secondary bottom on a test of this area.

Daily Technical Forecast

Based on the early price action, the direction of the December Comex Gold market the rest of the session is likely to be determined by trader reaction to the downtrending Gann angle at $1198.70.

A sustained move under $1198.70 will indicate the presence of sellers. If this move creates enough downside momentum then look for the selling to extend into the support cluster at $1187.80 to $1187.10.

If $1187.10 fails as support then look for the selling to extend into the Fib level at $1182.90, this is followed by a short-term uptrending Gann angle at $1177.10.

A sustained move over $1198.70 will signal the presence of buyers. This could lead to a retest of the major 50% level at $1205.90, followed by the minor top at $1208.40. Taking out this level could spike the market into the major Fib level at $1215.10.