Gold Price Futures (GC) Technical Analysis – June 22, 2018 Forecast

August Comex Gold futures are trading slightly better on Friday. There was a slight follow-through to the upside earlier in the session.

Traders are reacting to a weaker U.S. Dollar and lower Treasury yields. For the first time in several weeks, gold traders were also showing some reaction to geopolitical concerns over US-China trade relations.

We could see a little volatility at 1345 GMT with the release of the U.S. Flash Manufacturing PMI report. It is expected to come in at 56.3.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through $1313.00 will change the main trend to up. A move through $1262.40 will signal a resumption of the downtrend.

The minor trend is also down, however, a new minor bottom has formed at $1262.40.

The main range is $1313.00 to $1262.40. Its 50% level or pivot at $1287.70 is a potential upside target.

Daily Technical Forecast

Based on the early trade, the direction of the August Comex Gold futures contract is likely to be determined by trader reaction to the long-term uptrending Gann angle at $1268.40. This is also today’s low.

A sustained move over $1268.40 will indicate the presence of buyers. This could trigger a move into a long-term downtrending Gann angle at $1274.30. We could see a technical bounce on the first test of this angle. However, this angle is also the trigger point for an acceleration to the upside with potential targets coming in at $1285.00 and $1287.70.

A sustained move under $1268.40 will signal the presence of sellers. This could lead to a test of the steep downtrending Gann angle at $1265.00. Crossing to the weak side of this angle will put gold in a bearish position with $1262.40 the next downside target.

Look for an acceleration to the downside under $1262.40 with the next major target the December 12 bottom at $1251.90. The steep downtrending Gann angle predicts we could hit this price on June 25-26.

Basically, look for an upside bias to develop on a sustained move over $1274.30, and for a downside bias to develop on a sustained move under $1268.40.