Gold Price Futures (GC) Technical Analysis – July 9, 2018 ForecastBased on the early price action and the current price at $1265.90, the direction of the August Comex Gold futures contract the rest of the session is likely to be determined by trader reaction to the steep uptrending Gann angle at $1262.80.
August Comex Gold futures are trading higher on Monday. The rally is being fueled by a weaker U.S. Dollar, which is helping to make dollar-denominated gold a more attractive investment. Although most of the rally can be attributed to short-covering, traders seem to be shrugging off higher stock prices and increased demand for risk.
Daily Technical Analysis
The main trend is down according to the daily swing chart. However, momentum is trending higher in reaction to the closing price reversal bottom formed on July 3 and the subsequent confirmation of the chart pattern.
A trade through $1274.40 will change the main trend to up. A move through $1238.80 will negate the closing price reversal bottom and signal a resumption of the downtrend.
The short-term range is $1274.40 to $1238.80. Its 50% level or pivot is providing support today.
The main range is $1313.00 to $1238.80. Its retracement zone at $1275.90 to $1284.70 is the primary upside target. Sellers could show up on a test of this zone.
Daily Technical Forecast
Based on the early price action and the current price at $1265.90, the direction of the August Comex Gold futures contract the rest of the session is likely to be determined by trader reaction to the steep uptrending Gann angle at $1262.80.
A sustained move over $1262.80 will indicate the presence of buyers. If this move creates enough upside momentum then look for the rally to extend into the main top at $1274.40, followed closely by the main 50% level at $1275.90.
A sustained move under $1262.80 will signal the presence of sellers. If this move generates enough downside momentum then we could see a retest of the short-term pivot at $1256.60, followed by an uptrending Gann angle at $1250.80.