Gold Price Futures (GC) Technical Analysis – July 19, 2017 Forecast

August Comex Gold futures are trading slightly lower and inside yesterday’s range. This chart pattern tends to indicate investor indecision and impending volatility. Helping to hold gold in a tight range during the pre-market session is a recovery by the U.S. Dollar. Firmer equity markets are also capping the gold market due to increased demand for higher-yielding assets.

Technical Analysis

The main trend is down according to the daily swing chart. However, momentum has been trending higher since the formation of the closing price reversal bottom at $1204.00 on July 10.

The momentum will continue to trend higher if buyers can take out yesterday’s high at $1244.10. Upside momentum may eventually lead to a test of the next main top at $1260.00.

The main range is $1260.00 to $1204.00. Its retracement zone at $1232.00 to $1238.60 was the primary upside target. However, buyers were able to cross to the strong side of this zone on Tuesday so now it is new support.

If the rally continues then we could reach the major retracement zone at $1251.40 to $1262.60. Inside this range is the $1260.00 main top.

Forecast

Based on the current price at $1241.70, gold is likely to continue its upside bias unless the price cluster at $1238.60 fails as support. If this occurs then look for a test of the support cluster at $1232.00. Momentum will shift to the downside if this support cluster fails to hold.

If the buying is strong enough to take out $1244.10 today then look for a possible extension into the 50% level at $1251.40.