Gold Price Futures (GC) Technical Analysis – July 20, 2017 Forecast

December Comex Gold futures are trading lower shortly before the European Central Bank interest rate decision and monetary policy statement. Since these events affect the U.S. Dollar, gold traders are paying close attention to what the central bank and ECB President Mario Draghi have to say about the tapering of stimulus and the direction of interest rates.

Technical Analysis

The main trend is down according to the daily swing chart. However, momentum is trending higher. A trade through $1250.90 will signal a resumption of the rally. A trade through $1267.10 will change the main trend to up.

The main range is $1305.50 to $1211.10. Its retracement zone at $1258.30 to $1269.40 is the primary upside target.

The new short-term range is $1211.10 to $1250.90. If the selling continues then look for a break into its retracement zone at $1231.00 to $1226.30.

Forecast

Based on the current price at $1243.60 and the earlier price action, the direction of the gold market today will be determined by trader reaction to the pair of Gann angles at $1243.50 and $1243.10. This area is currently being tested.

A sustained move over $1243.50 will signal the presence of buyers. If this creates upside momentum then look for a test of $1250.90. This is the trigger point for a move into the main 50% level at $1258.30. Overtaking this price could drive the market into the main top at $1267.10 then the Fib level at $1269.40.

The Fib level at $1269.40 is the trigger point for an acceleration into the downtrending angle at $1274.50.

A sustained move under $1243.10 will indicate the selling is getting stronger. This could trigger an acceleration to the downside with the next target area $1231.00, $1227.10 and $1226.30.

Basically, look for an upside bias to develop on a sustained move over $1243.50 and for a downside bias to develop on a sustained move under $1243.10.