Gold Price Futures (GC) Technical Analysis – July 10, 2018 Forecast

August Comex Gold futures are plunging on Tuesday in reaction to a combination of rising Treasury yields, increased demand for risky assets and a strong U.S. Dollar. Since gold doesn’t pay an investor a dividend or interest, it becomes a less-desirable asset during periods of rising interest rates and stock prices. Furthermore, it is a dollar-denominated asset. So foreign demand for the precious metals tends to drop when the dollar rises.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through $1238.80 will signal a resumption of the downtrend with $1230.70 the next target.

The minor trend is up. However, today’s price action makes $1266.90 a new minor top.

The short-term range is $1238.80 to $1266.90. Its 50% level or pivot at $1252.90 is controlling the direction of the market today.

The intermediate range is $1274.40 to $1238.80. Its 50% level or pivot at $1256.60 is also influencing the price action.

Daily Technical Forecast

Based on the early trade, the direction of the August Comex Gold market the rest of the session is likely to be determined by trader reaction to the short-term pivot at $1252.90.

A sustained move under $1252.90 will indicate the presence of sellers. This could lead to a test of uptrending Gann angles at $1246.80 and $1242.80. The latter is the last potential support angle before the $1238.80 main bottom.

A sustained move over $1252.90 will signal the presence of buyers. This will be a sign that buyers are trying to form a potentially bullish secondary higher bottom.

Overcoming an uptrending Gann angle at $1254.80 and the pivot at $1256.60 will indicate the buying is getting stronger. This will put the market in a position to challenge $1266.90.

If a secondary higher bottom doesn’t form then a new main top is likely to form at $1266.90. This likely means that $1238.80 will fail as support.