Gold Price Futures (GC) Technical Analysis – Short-Term Strength Over $1798.10, Weakness Under $1791.90

Gold futures are trading higher at the mid-session on Monday, but an early attempt to breakout to the upside seems to have fizzled, leading to just a steady performance. The market is being supported by a weaker U.S. Dollar, which is driving up foreign demand for the dollar-denominated asset, but gains are being limited by firmer Treasury yields and strong demand for higher-yielding assets.

At 15:37 GMT, August Comex gold is trading $1809.00, up $7.10 or +0.39%.

In other news, speculators increased their bullish positions in COMEX gold and silver contracts in the week to July 7, the U.S. Commodity Futures Trading Commission said on Friday.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through $1829.80 will signal a resumption of the uptrend. The main trend will change to down on a trade through the last swing bottom at $1766.30.

The nearest support is a pair of minor 50% levels at $1798.10 and $1791.90. The price action the past two sessions indicates that investors are respecting these levels.

Daily Swing Chart Technical Forecast

The early price action suggests the key levels to watch today are $1798.10 and $1813.20.

A sustained move over $1798.10 will indicate the presence of buyers. If this is able to create enough momentum, then look for a test of another minor pivot at $1813.20. Overtaking this level will indicate the buying is getting stronger with the main top at $1729.80 the next major target.

If $1798.10 fails as support then look for a pullback into the next 50% level at $1791.90. Buyers could come in on the first test of this level. However, it is also the trigger point for an acceleration to the downside with the next target a support cluster at $1768.40 to $1766.30.