Gold Price Futures (GC) Technical Analysis – Strengthens Over $1787.00, Weakens Under $1780.90The direction of the August Comex gold futures contract on Monday will likely be determined by the pair of 50% levels at $1787.00 and $1780.90.
Stronger demand for risky assets and firm U.S. Treasury yields are capping gold prices on Monday, while a weaker U.S. Dollar could be slowing down the selling pressure. Traders seem to be shrugging off concerns over another surge in U.S. COVID-19 cases.
Gold traders appear to be sitting on the fence at this time with bullish traders citing a resurgence in coronavirus cases as a reason for higher prices, while bearish traders are saying COVID won’t be an issue as long as the economic data continues to show improvement.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily chart, however, momentum starting trending lower on July 1 with the formation of a closing price reversal top.
A trade through $1807.70 will negate the closing price reversal top and signal a resumption of the uptrend. The main trend changes to down on a trade through $1754.00.
The first minor range is $1807.70 to $1766.30. Its 50% level or pivot comes in at $1787.00.
The second minor range is $1754.00 to $1807.70. Its 50% level or pivot comes in at $1780.90.
The main range is $1671.70 to $1807.70. If the trend changes to down then look for a test of its 50% level at $1739.70.
Daily Swing Chart Technical Forecast
Based on the early price action and the current price at $1786.30, the direction of the August Comex gold futures contract the rest of the session on Monday will likely be determined by the pair of 50% levels at $1787.00 and $1780.90.
A sustained move over $1787.00 will indicate the presence of buyers. Taking out Thursday’s high at $1791.70 will indicate the buying is getting stronger. However, it’s going to take a surge in buying to trigger a retest of $1807.70.
A break under $1787.00 will be the first sign of weakness. A sustained move under $1780.90 will indicate the selling pressure is getting stronger. This could trigger a further break into the July 2 low at $1766.30. This is the last potential support before the $1754.00 main bottom.