Gold Price Futures (GC) Technical Analysis – June 23, 2017 Forecast

August Comex Gold futures are trading higher shortly before the regular session opening. The market is being driven higher by a weaker U.S. Dollar and concerns that low inflation will curtail the Fed’s plans to raise interest rates at least once more before the end of the year.

Traders are also concerned about geopolitical events including President Trump’s involvement with Russia and its attempt to influence U.S. elections, a possible military conflict with North Korea and the start of Brexit negotiations.

Technical Analysis

The main trend is down according to the daily swing chart. However, momentum is shifting to the upside. Today’s higher-high has made $1241.70 a new main bottom. A trade through this bottom will signal a resumption of the downtrend.

The main range is $1217.80 to $1298.80. Its retracement zone is $1258.30 to $1248.70. Gold is currently trading inside this zone, but treating to break out over its upper limit.

The short-term range is $1298.80 to $1241.70. If buyers can take out $1258.30 then we could see an acceleration into the short-term retracement zone at $1270.30 to $1277.00.

Forecast

Based on the current price at $1258.10, the direction of the gold market today is likely to be determined by trader reaction to the 50% level at $1258.30 and the steep uptrending angle at $1257.70.

A sustained move over $1258.30 will signal the presence of buyers. This could trigger an acceleration into the next 50% level at $1270.30.

A sustained move under $1257.70 will indicate the presence of sellers. This could lead to a retracement of today’s earlier rally with a support cluster at $1249.80 to $1249.70 the next likely target. This could create a labored break with potential downside targets coming in at $1248.70, $1245.70 and $1243.70. The latter is the last potential support angle before the $1241.70 main bottom.

Watch the price action and read the order flow at $1258.30 today. Taking out this price with conviction could trigger a $12.00 rally.