Gold Price Futures (GC) Technical Analysis – August 31, 2017 Forecast

December Comex Gold futures are trading lower shortly before the regular session opening, but rebounding from its low. The intraday rally may have been triggered by a successful test of a short-term retracement zone.

Traders will continue to react to the movement in U.S. Treasury yields, the direction of the U.S. Dollar and demand for risky assets. There is a slew of U.S. economic reports today, but Core PCE Price Index, Personal Spending and Personal Income at 1230 GMT are likely to have the biggest influence on the price action.

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 with the November 9, 2016 main top at $1353.00 the next likely upside target.

A trade through $1281.30 will change the main trend to down with $1272.70 the next target.

The short-term range is $1281.30 to $1331.90. Its retracement zone at $1306.60 to $1300.60 was the first downside target. Today’s selling stopped inside this zone at $1302.30, triggering the intraday short-covering rally.

Forecast

Based on the current price at $1311.30 (1000 GMT), the direction of the market is likely to be determined by trader reaction to an uptrending angle at $1313.30 and a downtrending angle at $1315.90.

A sustained move under $1313.30 will indicate the presence of sellers. This could drive the market back into the short-term retracement zone at $1306.60 to $1300.60. This is followed by a support cluster at $1297.30 to $1296.70.

The market opens up to the downside under $1296.70 with a series of uptrending Gann angles coming in at $1291.00, $1289.30 and $1287.00.

Overtaking the downtrending angle at $1315.90 and sustaining the move will signal the presence of buyers. This could drive gold into a series of downtrending angles at $1323.90, $1327.90 and $1329.90. The latter is the last potential resistance angle before the $1331.90 main top.