Gold Price Futures (GC) Technical Analysis – July 5, 2017 Forecast

August Comex gold futures are trading lower in reaction to a reaction in the U.S. Dollar. Gold traders are also anticipating a hawkish Fed in today’s minutes from its June monetary policy meeting. The market widely expects the central bank to acknowledge that it wants to raise rates at least one more time this year, however, the primary focus for traders will be on the details of its plan to trim its balance sheet.

Technical Analysis

The main trend is down according to the daily swing chart. The trade through the May 9, 2017 main bottom at $1217.80 reaffirmed the downtrend. If the selling pressure increases, we could see an eventual move into the March 10 main bottom at $1201.40.

Forecast

Based on the current price at $1217.40, the direction of the gold market today is likely to be determined by trader reaction to the main bottom at $1217.80.

A sustained move under $1217.80 will indicate the presence of sellers. This could drive the market into the downtrending angle at $1214.80.

Crossing to the weak side of the long-term downtrending angle at $1214.80 will put gold in an extremely bearish position. This could create the downside momentum needed to drive the market into the next main bottom at $1201.40.

Overcoming $1214.80 will signal the return of buyers. This could drive the market back into the downtrending angle at $1228.00. This angle stopped the market earlier in the session.

If buyers can overcome $1228.00 then the next target angle is $1244.00.

Look for a bearish tone as long as gold remains under $1217.80. An upside bias could develop on a sustained move over this price.