Gold Price Futures (GC) Technical Analysis – August 9, 2017 Forecast

Safe-haven buying is helping to drive December Comex Gold prices higher today. Tension between the United States and North Korea is pressuring U.S. Treasury yields, making the U.S. Dollar a less-attractive investment while increasing demand for dollar-denominated gold.

Gold is likely to rise today if the stock market falls under pressure. If stock investors decide to book profits then they’ll move some of the proceeds into gold as a hedge. The steeper the break in the stock market, the higher gold may rally.

Technical Analysis

The main trend is up according to the daily swing chart. A trade through $1280.30 will reaffirm the uptrend and make $1257.10 a new higher bottom.

The main trend will change to down on a move through $1249.40.

The main range is $1305.50 to $1211.10. Its retracement zone is $1258.30 to $1269.40. Holding above this zone will also give gold an upside bias and turn the retracement zone levels into support.

Forecast

Gold starts today’s U.S. session with an upside bias. The first target angle comes in at $1274.30. This is followed by the next target angle at $1277.30. This is the last potential resistance angle before the $1280.30 main top.

Taking out $1280.30 will reaffirm the uptrend. This could lead to a test of a long-term downtrending angle at $1283.00. This angle is the trigger point for an acceleration into the next downtrending angle at $1294.25. This is the last potential resistance angle before the $1305.50 main top.

A failure to hold $1269.40 will indicate the presence of sellers. Crossing to the weak side of a downtrending angle at $1268.30 will mean the selling is getting stronger. This could lead to a plunge into a cluster of levels at $1258.30, $1257.10 and $1255.10.

In order to breakout to the upside, gold is going to have to get help from the stock market. A steep drop in the stock market could fuel a strong rally through $1280.30 with $1305.50 the next target.