Gold Price Futures (GC) Technical Analysis – Pressured by Rising Yields, Firmer U.S. Dollar

August Comex Gold futures are trading lower on Friday. The market continues to trade inside Monday’s wide range, but with a downside bias. A stronger U.S. Dollar and rising Treasury yields are the catalysts behind today’s weakness.

 

Technical Analysis

The main trend is down according to the daily swing chart. A trade through $1260.00 will change the main trend to up. A move through $1236.50 will signal a resumption of the selling pressure with $1217.80 the next downside target.

The main range is $1217.80 to $1298.80. Its retracement zone is $1258.30 to $1248.70. Gold has been straddling this zone for several days. Drifting below this zone today is giving it a downside bias today. Trading below the zone means the levels are new resistance.

The short-term range is $1298.80 to $1236.50. If buyers do take out $1260.00 and the trend changes to up then its retracement zone at $1267.70 to $1275.00 will become the primary upside target.

Forecast

Based on the current price at $1243.60, the downside bias is likely to continue as long as gold remains under the downtrending angle at $1250.00 today. This angle has been guiding the market lower since the $1260.00 main top on June 23.

The first downside target is this week’s low at $1236.50. This is followed by the long-term uptrending angle at $1236.30. If the angle is taken out then lookout to the downside with the next target angle coming in at $1227.00. This is the last potential support angle before the $1217.80 main bottom.

Taking out the downtrending angle at $1250.00 could trigger a breakout to the upside with the next targets the main 50% level at $1258.30 and the main top at $1260.00. This price is the trigger point for an acceleration into the downtrending angle at $1262.80. This angle is followed by the short-term 50% level at $1267.70.

Gold is also trading inside a triangle. The longer it remains inside this triangle, the bigger the breakout move.