Gold Price Futures (GC) Technical Analysis – June 20, 2018 Forecast

August Comex gold prices are edging lower on Wednesday, hitting a six-month low earlier in the session. Given the recent geopolitical turmoil, and gold’s response to the news, it appears that gold has lost its appeal as a safe haven asset. Gains are being capped today by a firmer U.S. Dollar and increased demand for higher risk assets.

The technical bounce off today’s low at $1272.10 suggests the potential for a closing price reversal bottom. The move will not change the trend, but it should alleviate some of the downside pressure should it gain traction.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through today’s intraday low at $1272.10 will signal a resumption of the downtrend. The main trend will change to up on a trade through $1313.00.

The lack of follow-through to the downside after taking out yesterday’s low by only $0.50 before recovering, suggests the selling pressure may be weakening.

Daily Technical Forecast

Based on the early price action, the direction of the gold market today is likely to be determined by trader reaction to a pair of downtrending Gann angles at $1278.40 and $1281.00.

A sustained move under $1278.40 will signal the presence of sellers. If this creates enough downside momentum, we could see a drive through today’s intraday low into a long-term uptrending Gann angle at $1268.30. This is the last potential support angle before the $1251.90 main bottom.

A sustained move over $1281.00 will indicate the presence of buyers. It will also put the market in a position to form a potentially bullish closing price reversal bottom.

If the move through $1281.00 gains traction then look for a potential acceleration into a long-term uptrending Gann angle at $1284.50. This price is also a trigger point for a potential surge into $1292.60 to $1297.00.

Basically, the downside bias will continue on a sustained move under $1278.40, and an upside bias will develop on a sustained move over $1281.40.

Additionally, overtaking $1278.80 will put the market in a position to form a potentially bullish closing price reversal bottom, which could fuel the start of a 2 to 3 day rally.