Gold Price Futures (GC) Technical Analysis – August 30, 2017 Forecast

December Comex Gold futures are under pressure on Wednesday, shortly ahead of the regular session opening. Rising Treasury yields, a stronger U.S. Dollar and increased demand for higher risk assets are the reasons behind the weakness.

The concerns over North Korea have diminished, but they have not gone away. This issue may actually limit the selling.

Today, investors will get the opportunity to react to President Trump’s tax reform plan announcement, the ADP Private Sector Jobs report and most importantly, the U.S. Preliminary GDP report. Bullish reports should drive the dollar higher which will weaken the dollar-denominated gold market.

Technical Analysis

The main trend is up according to the daily swing chart. A trade through $1331.90 will signal a resumption of the uptrend. The main trend will change to down on a trade through $1281.30.

The short-term range is $1281.30 to $1331.90. Its retracement zone at $1306.60 to $1300.60 is the primary downside target. Since the main trend is up, we could see a technical bounce on the first test of this zone.

Forecast

Based on the current price at $1315.30, the key targets are uptrending angles at $1329.30 and $1305.30.

Overcoming $1315.30 will put the gold market in an extremely strong position.

The first downside target is a support cluster at $1306.60 to $1305.30. Buyers could show up on a test of this area. If it fails then look for the selling to extend into the Fibonacci level at $1300.60, followed by another potential support cluster at $1294.70 to $1293.30.