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Gold Price Futures (GC) Technical Analysis – August 5, 2019 Forecast

By:
James Hyerczyk
Published: Aug 5, 2019, 11:28 UTC

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.

Gold Bars and Dollar

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%.

Comex Gold
Daily December Comex Gold

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.

Bullish Scenario

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.

Bearish Scenario

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.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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