Gold Price Futures (GC) Technical Analysis – June 21, 2017 Forecast

August Comex Gold futures are trading slightly higher on Tuesday. Today’s price action will be determined by the movement in U.S. Treasury yields and the U.S. Dollar. Lower yields will make the dollar a less attractive investment. This could be supportive for dollar-denominated gold. Weakness in the U.S. equity markets could also underpin gold prices.

Look for volatility with the release of the U.S. Existing Home Sales report at 1400 GMT.

Technical Analysis

The main trend is down according to the daily swing chart. The market is not in a position to turn the main trend to up, but it is in the window of time to post a potentially bullish closing price reversal bottom.

Taking out $1242.40 will signal a resumption of the downtrend. The next major target is the May 9 bottom at $1217.80.

The main range is $1217.80 to $1298.80. Its retracement zone is $1258.30 to $1248.70. Trading below this zone will help maintain the downside bias. Overcoming this retracement zone will indicate a shift in investor sentiment.

Forecast

Based on the current price at $1246.10 and the inside move, we could move in either direction.

Overcoming the uptrending angle at $1247.80 and the Fibonacci level at $1248.70 will indicate the presence of buyers. This could generate enough upside momentum to challenge the downtrending angle at $1254.80, followed by the 50% level at $1258.30.

The trigger point for an acceleration to the upside is $1258.30.

A sustained move under $1247.80 will signal the presence of sellers. This could drive the market into yesterday’s low at $1242.40.

If sellers take out $1242.40 with conviction then look for a possible acceleration to the downside with the next target angle coming in at $1232.80. This is the last potential support angle before the $1217.80 main bottom.

Basically, look for a bullish tone to develop on a sustained move over $1248.70 and a bearish tone to develop on a sustained move under $1242.40. Otherwise, look for a sideways trade.