Gold Price Futures (GC) Technical Analysis – Trader Reaction to $1334.60 Sets Tone into Close

Based on the current price at $1337.40, the direction of gold late in the session is likely to be determined by trader reaction to the steep uptrending Gann angle at $1334.60.
James Hyerczyk
Gold Bars and Dollar

Gold is trading higher shortly before the regular session close, but backing off from its high. The early surge was fueled by a drop in Treasury yields and weaker demand for higher risk assets. A weak consumer inflation report also helped drive the market to its high for the session because it increased the odds of a sooner-than expected Fed interest rate cut.

At 16:47 GMT, August Comex gold futures are trading $1337.40, up $6.20 or +0.47%. The high of the session is $1342.30.

A turnaround in the U.S. Dollar Index spurred by a drop in the Euro is helping to drive gold from its highs late in the session.

Daily August Comex Gold

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through $1352.70 will signal a resumption of the uptrend. This will also make $1323.60 a new main bottom.

The minor trend is up. A trade through $1323.60 will change the minor trend to down.

The market is currently trading on the strong side of a major Fibonacci level at $1332.60. This is helping to give the market an upside bias. Falling back below this level will neutralize the longer-term bias.

The short-term range is $1352.70 to $1323.60. This zone was the first upside target. It stopped the rally earlier today.

On the downside, if $1323.60 is taken out, we could see a further break into $1313.70 to $1304.40.

Daily Technical Forecast

Based on the current price at $1337.40, the direction of gold late in the session is likely to be determined by trader reaction to the steep uptrending Gann angle at $1334.60.

Bullish Scenario

A sustained move over $1334.60 will indicate buyers are trying to prop up the market. This could lead to a test of $1338.20 then a resistance cluster at $1341.60 to $1342.00. The latter is the trigger point for an acceleration to the upside.

Bearish Scenario

A sustained move under $1334.60 will signal the presence of sellers. This could trigger a break into the Fibonacci level at $1332.60. This is the trigger point for an acceleration to the downside with the next targets $1323.60 and $1322.50. The latter is another trigger point for an acceleration to the downside.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US