Gold Price Futures (GC) Technical Analysis – August 30, 2018 Forecast

December Comex Gold is putting in a mixed performance early Thursday as investors continue to try to balance the weakness in the U.S. Dollar with expectations of rising interest rates. These factors along with low volume ahead of the long U.S. holiday week-end may be holding prices in a range.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through $1220.70 will signal a resumption of the uptrend. The main trend will change to down on a move through $1189.50.

The main range is $1244.70 to $1167.10. For a fifth consecutive session, gold is trading inside its retracement zone at $1205.90 to $1215.10. Trader reaction to this zone will determine the near-term direction of the market.

The short-term range is $1167.10 to $1220.70. Its retracement zone at $1193.90 to $1187.60 is the primary downside target. The last main bottom at $1189.50 falls inside this range.

Daily Technical Forecast

Based on the early trade, the direction of the December Comex Gold market is likely to be determined by trader reaction to the steep uptrending Gann angle at $1207.10 and the 50% level at $1205.90.

A sustained move over $1207.10 will indicate the presence of buyers. If this generates enough upside momentum then look for a rally into the Fibonacci level at $1215.10, followed by the downtrending Gann angle at $1216.70.

The angle at $1216.70 is the trigger point for an acceleration to the upside. The first target is this week’s high at $1220.70. Overtaking this level with rising volume could fuel an extended rally into the next downtrending Gann angle at $1230.70. This is the last potential resistance angle before the $1244.70 main top.

A sustained move under $1205.90 will signal the presence of sellers. This is the trigger point for an acceleration to the downside. If sellers come in strong then look for a potential break into the next major support at $1193.90. The best downside target is a price cluster at $1187.60 to $1187.10.