Gold Price Futures (GC) Technical Analysis – June 19, 2017 Forecast

A stronger U.S. Dollar is helping to pressure August Comex Gold futures shortly before the regular session opening. This is a reaction to last week’s decision by the Fed to raise interest rates. The Fed also said that it still planned to raise rates at least one more time.

Today, gold is likely to react to comments from FOMC Member William Dudley. He is usually a hawk so gold investors will be interested in what he has to say about the weakening economy and is impact on future rate hikes.

The Fed said last week that inflation was likely to remain below its 2.0% target. U.S. consumer inflation and housing came in weaker than expected so Dudley may offer his assessment as to whether the economy can handle another rate hike.

Technical Analysis

The main trend is down according to the daily swing chart.

The main range is $1217.80 to $1298.80. Its retracement zone is $1258.30 to $1248.70. Gold is currently trading inside this range. Trader reaction to this zone will determine the near-term direction of the market.

Forecast

Taking out the lower or Fibonacci level at $1248.70 will indicate the presence of sellers. This could lead to a quick test of the uptrending angle at $1245.80.

The angle at $1245.80 is the trigger point for an acceleration to the downside with $1231.80 the next likely target. This is the last potential support angle before the $1217.80 main bottom.

Overcoming the upper or 50% level at $1258.30 will signal the presence of buyers. This could create the momentum needed to challenge the downtrending angle at $1262.80.

The angle at $1262.80 has been guiding the market lower since June 6 so taking it out will indicate the buying is getting stronger.