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.

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