Gold Price Futures (GC) Technical Analysis – June 20, 2017 Forecast

August Comex gold futures are trying to rebound shortly before the regular session opening after touching a five-week low earlier. A steady dollar is helping to limit gains.

Gold traders are going to continue to react to any comments from Fed officials that deal with the Fed’s plans to raise interest rates later in the year. Yesterday’s sell-off was fueled by hawkish comments from FOMC Member William Dudley. Later today, investors will get the opportunity to react to comments from FOMC Member Robert Kaplan.

On the support side, investors will be watching the Brexit negotiations and other geopolitical events.

Technical Analysis

The main trend is down according to the daily swing chart. The trend isn’t even close to turning the main trend to up, but the market is in the window of time for a potentially bullish closing price reversal bottom. We’ve had the lower-low, now all we need is the higher close.

A closing price reversal bottom doesn’t mean the trend is getting ready to turn up, but it could lead to a 2 to 3 day counter-trend rally.

The main range is $1217.80 to $1298.80. Its retracement zone is $1258.30 to $1248.70. This zone is controlling the longer-term trend of the market. Currently, it is trading below this zone. This is also giving gold a downside bias.

Forecast

Based on the current price at $1245.20 and the earlier price action, the direction of the gold market the rest of the session is likely to be determined by trader reaction to the uptrending angle at $1246.80.

A sustained move under $1246.80 will indicate the presence of sellers. If the selling volume continues then look for a possible acceleration to the downside with the next major target angle coming in at $1232.30. This is the last potential support angle before the $1217.80 main bottom.

Overcoming the uptrending angle at $1246.80 will indicate the presence of buyers. The next target is the major Fibonacci level at $1248.70.

Crossing to the strong side of the Fib level at $1248.70 could trigger an acceleration into a resistance cluster at $1258.30 to $1258.80.

Basically, look for the downside bias to continue as long as gold remains under $1246.80. Look for an upside bias to develop on a sustained move over $1248.70.