Gold Price Futures (GC) Technical Analysis – August 28, 2018 Forecast

December Comex Gold futures are trading higher, boosted by a weaker U.S. Dollar. The catalyst behind the move is the announcement of the U.S. trade deal with Mexico. The easing of tensions between the two countries is encouraging investors to sell their long dollar positions placed earlier in the year as safe haven protection against a long-term trade dispute.

Daily Technical Analysis

The main trend is up according to the daily swing chart. The next main top is $1244.70. A trade through $1189.50 will change the main trend to down.

The main range is $1244.70 to $1167.10. Its retracement zone at $1215.10 to $1205.90 is new support. Holding above this zone will support the upside bias.

Daily Technical Forecast

Based on the early trade, the direction of the December Comex gold futures contract the rest of the session is likely to be determined by trader reaction to the long-term downtrending Gann angle at $1218.70.

A sustained move over $1218.70 will indicate the buying is getting stronger. If the upside momentum continues to build then we could see a test of a pair of Gann angles coming in at $1231.10 to $1231.70.

A sustained move under $1218.70 will signal the return of sellers. This could drive the market into the Fibonacci level at $1215.10.

The Fib level is the trigger point for a potential acceleration to the downside with the 50% level at $1205.90 the next major target. If this price holds as support then this will tell us the buying is real. If it fails as support then look for a break into the steep uptrending Gann angle at $1199.10.

Basically, look for the gold market to strengthen on a sustained move over $1218.70 and for the market to weaken on a sustained move under $1215.10. Trading in between these points will indicate investor indecision and impending volatility.