Gold Price Futures (GC) Technical Analysis – July 13, 2017 Forecast

August Comex Gold futures are trading flat shortly before the regular session opening and another day of testimony from Fed Chair Janet Yellen. Yesterday, Yellen helped underpin gold with a few dovish comments about inflation. She could trigger another rally today if she continues to deliver a dovish message.

Traders are also preparing for today’s producer inflation report that is expected to come in unchanged at 0.0%. On Friday, investors will get the opportunity to react to the U.S. consumer inflation report. This one could be a market moving event.

Technical Analysis

The main trend is down according to the daily swing chart. The trend will turn up on a trade through $1260.00. A trade through $1204.00 will signal a resumption of the downtrend.

The main retracement zone is $1216.80 to $1197.10. Aggressive counter-trend buyers are trying to establish a support zone inside this range.

The short-term range is $1260.00 to $1204.00. Its retracement zone at $1232.00 to $1238.60 is the primary upside target. A downtrending angle passes through this zone at $1234.00, making it a valid upside target also. Since the main trend is down, sellers could come in on a test of the retracement zone.

Forecast

Based on the current price at $1219.80 and the earlier price action, the direction of the gold market today is likely to be determined by trader reaction to the support cluster at $1216.80 to $1216.00.

A sustained move over $1216.80 will indicate the presence of buyers. This could create the upside momentum later in the session to challenge the resistance cluster at $1232.00 to $1234.00.

A sustained move under $1216.00 will signal the presence of sellers. This could lead to a break into a series of potential support levels at $1210.00, $1207.00, $1204.80 and $1204.00.

Basically, look for an upside bias to develop on a sustained move over $1216.80 and for a downside bias to develop on a sustained move under $1216.00.