Gold Price Futures (GC) Technical Analysis – July 31, 2017 Forecast

December Comex Gold futures are trading slightly lower after hitting $1277.30 earlier in the session. Traders are reacting to a firmer U.S. Dollar and increased demand for higher yielding assets.

Technical Analysis

The main trend is up according to the daily swing chart, however, today’s session begins with the market in the window of time for a closing price reversal top. This could lead to a 2 to 3 day correction, but not necessarily a change in trend.

A trade through $1249.40 will change the main trend to down. The next major upside target comes in at $1305.50.

The main range is $1305.50 to $1211.10. The market is trading on the strong side of its retracement zone at $1269.40 to $1259.30. This is helping to sustain the upside bias.

The short-term range is $1211.10 to $1277.30. If there is a change in trend to down then its retracement zone at $1244.20 to $1236.40 will become the primary downside target.

Forecast

Based on the current price at $1274.40, the nearest downside target is the steep uptrending angle at $1271.10. The nearest upside target is a long-term downtrending angle at $1286.50.

If $1271.10 fails as support then look for a labored break into another long-term downtrending angle at $1267.50.

Crossing to the weak side of the angle at $1267.50 will indicate the selling is getting stronger with potential targets at $1261.40, $1259.30 and $1255.40.

The way of least resistance is up. Any selling is likely to be labored because of the many potential downside targets.