Gold Price Futures (GC) Technical Analysis – June 22, 2017 Forecast

August Comex Gold futures are trading higher. Today’s price action confirmed yesterday’s closing price reversal bottom. This could lead to the start of a 2 to 3 day rally, or a 50% retracement of the last break.

The catalyst behind the rally is falling U.S. Treasury yields. This is helping to make the U.S. Dollar a less desirable investment while boosting foreign demand for dollar-denominated gold. Falling crude oil prices are also raising doubts about the Fed’s ability to raise rates later in the year.

Technical Analysis

The main trend is down according to the daily swing chart. However, yesterday’s closing price reversal bottom suggests momentum may be shifting to the upside. A trade through $1241.70 will negate the chart pattern and signal a resumption of the downtrend.

The main range is $1217.80 to $1298.80. The market is currently trading inside its retracement zone at $1258.30 to $1248.70. This zone is controlling the short-term direction of the market.

The short-term range is $1298.80 to $1241.70. Overcoming $1258.30 could trigger a rally into its retracement zone at $1270.30 to $1277.00.

Forecast

The market is currently trading on the strong side of a downtrending angle at $1250.80. Holding above this angle will give gold an upside bias. This could drive the market into the 50% level at $1258.30.

Taking out $1258.30 with conviction could trigger an acceleration to the upside with $1270.30 the next target.

Falling back below $1250.80 will signal the return of sellers. This could drive gold back into a support cluster at $1248.80 to $1248.70.

If $1248.70 fails to hold as support then look for the selling to extend into at least $1241.70.

Basically, look for an upside breakout over $1258.30 and a break down in the market under $1248.70.