Gold Price Futures (GC) Technical Analysis – July 11, 2018 Forecast

A firm U.S. Dollar is pressuring gold futures on Wednesday. The market is trading lower, but inside yesterday’s range, suggesting investor indecision and impending volatility. It seems like investors are trying to figure out the latest round of potential tariffs on China by the United States. Furthermore, U.S. Treasury yields are lower today due to safe-haven buyers. Gold traders are trying to decide whether to buy because of falling yields and lower demand for risky assets, or sell because of the firmer U.S. Dollar.

At 1134 GMT, August Comex Gold futures are trading $1250.70, down $4.60 or -0.37%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through $1274.40 will change the main trend to up. A trade through $1238.80 will signal a resumption of the uptrend.

The minor trend is also down. A trade through the minor top at $1266.90 will change the minor trend to up.

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 providing resistance today.

The main range is $1313.00 to $1238.80. Its retracement zone at $1276.10 to $1284.90 is the primary upside target.

Daily Technical Forecast

Based on the early price action and the current price at $1250.70, the direction of the August Comex Gold futures contract the rest of the day is likely to be determined by trader reaction to the short-term uptrending Gann angle at $1248.80 and the short-term pivot at $1252.90.

A sustained move under $1248.80 will indicate the selling is getting stronger. This could trigger an acceleration into the next uptrending Gann angle at $1243.80. This is the last potential support angle before the $1238.80 main bottom. If this price fails, losses could extend into the July 7, 2017 main bottom at $1230.70.

Holding $1248.80 will indicate buyers are coming in to stop the price slide. However, overcoming $1252.90 will indicate the buying is getting stronger. This could drive gold into $1256.60, followed by an uptrending Gann angle at $1258.80.

Crossing to the strong side of the angle at $1258.80 could trigger an acceleration into the minor top at $1266.90. This is also the trigger point for a potential surge into a resistance cluster at $1276.10 to $1277.00.