Gold Price Futures (GC) Technical Analysis – Trend Down, but Could Be Building Support Base

August Comex Gold futures are trading nearly flat at the mid-session on relatively low volume. Traders lacked clarity today and were very tentative in their trade. Treasury yields were down which was supportive for gold prices. However, the U.S. Dollar traded higher against a basket of currencies which may have limited gains.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through $1332.40 will change the main trend to up. A move through $1286.80 will signal a resumption of the downtrend. So basically, we’ve been rangebound for about a month.

The minor trend is also down. A trade though $1307.80 will change the minor trend to up. This will also shift momentum to the upside.

The market is currently straddling a major Fibonacci level at $1300.60.

On the upside, the first resistance is a 50% level at $1309.60. This is followed by a resistance cluster at $1315.00 to $1315.60.

Daily Swing Chart Technical Forecast

Based on the current price at $1302.30 (1650 GMT), the direction of the August Comex Gold futures contract into the close is likely to be determined by trader reaction to the Fibonacci level at $1300.60.

A sustained move over $1300.60 will indicate the presence of buyers. If they can generate some upside momentum then look for a surge into $1307.80 to $1309.60.

A sustained move under $1300.60 will signal the presence of sellers. Under this level is a minor bottom at $1293.10.