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Gold Price Futures (GC) Technical Analysis – July 30, 2019 Forecast

By:
James Hyerczyk
Published: Jul 30, 2019, 13:36 UTC

Based on the early price action and the current price at $1442.00, the direction of the December Comex gold futures contract on Tuesday is likely to be determined by trader reaction to a pair of Gann angles at $1439.00 and $1436.40.

Comex Gold

Gold futures are trading higher on Tuesday as the dollar broke from its intraday, making dollar-denominated gold a more attractive asset. Lower demand for risky assets is also supporting gold after President Trump criticized China in a number of tweets. The comments from Trump helped dampen the optimism surrounding the renewed U.S.-China trade talks.

At 13:19 GMT, December Comex gold is trading $1442.00, up $8.70 or +0.60%.

In economic news, the Core PCE Price Index, Personal Spending and Personal Income reports all came in as expected. The Fed starts its two-day meeting later today. On Wednesday, it is widely expected to cut its benchmark rate by 25-basis points. However, investors will be more interested in its guidance.

Comex Gold
Daily December Comex Gold

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, momentum has been trending lower since the formation of the closing price reversal top at $1467.00 on July 19.

A trade through $1467.00 will negate the closing price reversal top and signal a resumption of the uptrend. The main trend will change to down on a trade trough $1413.70.

The minor trend is down. This confirms the momentum. A trade through $1447.00 will change the minor trend to up. This will shift momentum to the upside.

The main range is $1396.40 to $1467.00. Its retracement zone at $1431.80 to $1423.50 is support.

The minor range is $1467.00 to $1423.90. Its retracement zone at $1445.50 to $1450.50 is the first upside target and potential resistance. Sellers could come in on the first test of this area.

Daily Technical Forecast

Based on the early price action and the current price at $1442.00, the direction of the December Comex gold futures contract on Tuesday is likely to be determined by trader reaction to a pair of Gann angles at $1439.00 and $1436.40.

Bullish Scenario

A sustained move over $1439.00 will indicate the presence of buyers. This could trigger a rally into a series of levels at $1445.50, $1450.50 and $1453.00.

Bearish Scenario

A sustained move under $1436.40 will signal the return of sellers. This could drive the market into a 50% level at $1431.80. If this support fails then look for the selling to possibly extend into $1423.90 and 1423.50.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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