Gold Price Futures (GC) Technical Analysis – August 24, 2017 Forecast

December Comex Gold futures are trading lower shortly before the cash market opening. There has been very little movement this week with the market alternating between higher and lower closes all week ahead of Friday’s key speeches by ECB President Mario Draghi and Fed Chair Janet Yellen.

Technical Analysis

The main trend is up according to the daily swing chart. A trade through $1306.90 will signal a resumption of the uptrend. A move 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 has provided support all week.

The major support zone is $1269.40 to $1258.30.

Forecast

Based on the current price at $1292.30 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 trigger a rally into the next downtrending angle at $1298.90. We could see a technical bounce on the first test of this angle, but it’s also the trigger point for an acceleration to the upside with the next target angle at $1302.90. This is the last potential resistance angle before the $1306.90 main top.

A failure to hold $1289.80 could trigger a labored break with initial targets coming in at $1286.70 and $1285.80.

The daily chart opens up to the downside under $1285.80 with the next targets an uptrending angle at $1281.10, a longer-term uptrending angle at $1277.10 and a main bottom at $1272.70.