Gold Price Futures (GC) Technical Analysis – August 24, 2018 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 pivot at $1199.00.
James Hyerczyk
Comex Gold
Comex Gold

Comex gold futures are trading higher shortly before the New York opening. The market is being supported by a weaker U.S. Dollar. Gains are being limited by expectations of higher interest rates and worries about an escalation of the trade dispute between the United States and China.

At 1138 GMT, December Comex Gold is trading $1198.80, up $4.90 or +0.41%.

Later today, investors will get the opportunity to react to a report on July orders for durable goods at 1230 GMT, but the major event is a speech due at 1400 GMT from Fed Chairman Powell at the Jackson Hole, Wyoming central bankers’ symposium. Investors will be watching Powell’s words closely for any clues on the pace of the interest-rate hikes or his insights on the impact of tariffs, and U.S. economic growth.

Earlier in the week, the Fed minutes showed support for a further interest-rate hike in the near term, but also revealed concerns that escalating trade wars could harm the U.S. economy.

Daily December Comex Gold

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through $1208.40 will change the main trend to up. This will turn $1189.50 into a new main bottom.

The main range is $1244.70 to $1167.10. Its retracement zone at $1205.90 to $1215.10 is resistance. This zone stopped the rally earlier in the week at $1208.40.

The short-term range is $1167.10 to $1208.40. Its retracement zone at $1187.80 to $1182.90 is the primary downside target. Today’s early selling pressure came close to hitting this zone, but the selling stopped at $1189.50. Nonetheless, we’re going to continue to watch this zone for aggressive counter-trend buyers.

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 pivot at $1199.00.

A sustained move over $1199.00 will indicate the presence of buyers. If this move generates enough upside momentum then look for them to take a run at $1205.90, followed closely by $1208.40.

Taking out $1208.40 could trigger a surge into a resistance cluster at $1215.10. Crossing to the strong side of this cluster will put gold in a bullish position.

A sustained move under $1199.00 will signal the presence of sellers. This could lead to a retest of the uptrending Gann angle at $1191.10. This angle provided support earlier in the session. If it fails then look for the selling to extend into the short-term retracement zone at $1187.80 to $1182.90.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.