Gold Price Futures (GC) Technical Analysis – June 27, 2018 Forecast

Gold futures are trading slightly higher shortly before the regular session opening. Earlier in the session, the market traded down to $1255.00 before aggressive counter-trend buyers came in to defend the December 12 main bottom at $1251.90.

At 1057 GMT, August Comex Gold futures are trading $1260.00, up $0.10 or +0.01%.

Traders are finally showing a response to weakness in the stock market or the shedding of risky assets, and a drop in U.S. Treasury yields.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through today’s intraday low at $1255.00 will indicate the selling is getting stronger. This could lead to a test of the more than 6 month low at $1251.90.

A trade through $1274.40 will change the main trend to up.

Due to the prolonged move down in terms of price and time and today’s lower-low, gold is in the window of time for a closing price reversal bottom. This means investors should watch the price action and read the order flow on a test of yesterday’s close at $1259.90 and today’s opening at $1260.50.

A close over $1260.50 will form a strong closing price reversal bottom. This could trigger the start of a minimum 2 to 3 day rally.

The short-term range is $1274.40 to $1255.00. Its 50% level or pivot is controlling the short-term direction of the market.

The main range is $1313.00 to $1255.00. If a rally gains traction then its retracement zone at $1284.00 to $1290.80 will become the primary upside target.

Daily Technical Forecast

Based on the early price action, the direction of the gold market today will be determined by trader reaction to two levels. The first is yesterday’s close at $1259.50. The second is today’s opening at $1260.50.

A sustained move under $1259.50 will indicate the presence of sellers. This could lead to a retest of today’s low at $1255.00, followed by the main bottom at $1251.90. The latter is the trigger point for a potential acceleration to the downside with the next major target coming in at $1230.70.

A sustained move over $1260.50 will signal the presence of buyers. This could trigger a spike into a resistance cluster at $1264.70 to $1266.40.

The downtrending Gann angle at $1266.40 is the trigger point for a potential acceleration to the upside with the targets a main top at $1274.40 and a downtrending Gann angle at $1277.00.