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James Hyerczyk
Comex Gold

Gold futures broke sharply on Monday as investors booked profits in reaction to firmer U.S. Treasury yields, increased demand for risk and a stronger U.S. Dollar. Traders were reacting to the news of an agreement between the United States and Mexico on migration. The news helped alleviate some concerns over a slowing U.S. economy caused by President Trump’s trade policies.

At 14:06 GMT, August Comex gold futures are trading $1332.20, down $13.90 or -1.03%.

Daily August Comex Gold

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through $1352.70 will signal a resumption of the uptrend. This could lead to a test of the next main top at $1361.50. The uptrend is safe for now. A trade through $1274.60 will change the main trend to down.

The minor trend is also up. Today’s price action made $1352.70 a new minor top.

The long-term retracement zone is $1332.60 to $1307.70. Holding above this zone will help generate an upside bias. Falling inside this zone will neutralize the rally.

The short-term range is $1274.60 to $1352.70. Its retracement zone at $1313.70 to $1304.40 is the primary downside target and value zone. This zone is also straddling the long-term 50% level at $1307.70.

Since the main trend is up, look for buyers to come in on a test of this zone.


Daily Technical Forecast

Based on the early price action, the direction of the August Comex gold futures contract the rest of the session is likely to be determined by trader reaction to the Fibonacci level at $1332.60.

Bullish Scenario

A sustained move over $1332.60 will indicate the presence of buyers. If this creates enough upside momentum then look for the rally to possibly extend into the downtrending Gann angle at $1342.50. Counter-trend sellers could come in on a test of this angle.

Overtaking $1342.50 could trigger an acceleration to the upside with the next target angle coming in at $1352.00. This angle stopped the rally on Friday. It’s the last potential resistance angle before the $1361.50 main top.

Bearish Scenario

A sustained move under $1332.60 will signal the presence of sellers. The first target angle comes in at $1326.60. Buyers could come in on the initial test of this angle. If the selling is strong enough to take out $1326.60 and the downtrending Gann angle at $1323.50, then look for the selling to possibly accelerate into $1313.70, $1307.70 and $1304.40. This prices represent value so look for strong buying.

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