Gold Price Futures (GC) Technical Analysis – August 5, 2019 ForecastThe market is currently being driven by upside momentum. The only pattern that will stop this momentum is a higher-high, lower-close, otherwise known as a closing price reversal top. This makes Friday’s close at $1457.50 the key level to watch.
Gold futures are trading higher on Monday with the rally being driven by a plunge in Treasury yields and a weaker U.S. Dollar. Both moves are driving up foreign demand for the dollar-denominated gold market. Gold is also being supported by a drop in demand for risky assets with U.S. equity markets called sharply lower, shortly before the cash market opening.
At 11:14 GMT, December Comex gold is trading $1471.50, up $14.00 or +0.98%.
Daily Technical Analysis
The main trend is up according to the daily swing chart. The main trend was reaffirmed earlier today when buyers took out the July 19 top at $1467.00. The next major upside target is the March 14, 2014 main top at $1532.40.
The main trend will change to down on a trade through $1412.10 although breaking back below the previous main top at $1467.00 will be an early sign of weakness.
Daily Technical Forecast
The market is currently being driven by upside momentum. The only pattern that will stop this momentum is a higher-high, lower-close, otherwise known as a closing price reversal top. This makes Friday’s close at $1457.50 the key level to watch.
A sustained move over $1457.50 will indicate the presence of buyers. Holding above the previous top at $1467.00 will indicate the buying is getting stronger. If his generates enough upside momentum then look for a rally into a pair of uptrending Gann angles at $1492.40 and $1494.50.
The uptrending Gann angle at $1494.50 is a potential trigger point for an acceleration to the upside with the next target $1532.40.
A sustained move under $1457.50 will signal the presence of sellers. This will put the market in a position to post a potentially bearish closing price reversal top that could lead to a 2 to 3 day correction. The first downside target is a support cluster at $1444.40 to $1444.10. Look for an acceleration to the downside if $1444.10 fails as support.