Gold Price Futures (GC) Technical Analysis – July 24, 2017 Forecast

December Comex Gold futures are trading higher shortly before the regular session opening. The market is being supported by a weaker U.S. Dollar, lower Treasury yields, an early decline in equity markets and U.S. political uncertainty.

Technical Analysis

The main trend is down according to the daily swing chart, however, momentum has been trending higher since the formation of the main bottom at $1211.10 on July 10. 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 currently being tested. Trader reaction to this zone is likely to determine the tone of the market the rest of the week.

Forecast

Based on the current price at $1262.70 and the earlier price action, the direction of the gold market today is likely to be determined by trader reaction to the 50% level at $1258.30.

A sustained move over $1258.30 will signal the presence of buyers. This could generate enough upside momentum to challenge the main top at $1267.10, followed closely by the Fibonacci level at $1269.40 and a downtrending angle at $1272.50. This angle is the trigger point for an acceleration to the upside with the next potential upside target another downtrending angle at $1289.50.

A failure to hold $1258.30 will indicate the presence of sellers. This could trigger a further decline into the nearest support angle at $1251.10. This angle has been guiding the market higher for 10 sessions. Taking it out could trigger an acceleration to the downside with the next potential target the uptrending angle at $1231.10.

Basically, gold is trading inside a retracement zone that is inside a triangle. The key trigger point for an upside breakout is $1272.50 and the trigger point to the downside is $1251.10.