Comex Gold Futures (GC) Technical Analysis – July 30, 2014 …
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December Comex Gold futures broke sharply after the U.S. Dollar surged to the upside. The dollar-denominated gold market tends to weaken when the Greenback rallies due to diminished foreign demand. On Tuesday, however, the improving U.S. economy may have had something to do with the sell-off. Yesterday, a jump in U.S. consumer confidence to its highest level in almost seven years pressured gold and supported the dollar because it lifted some of the uncertainty about the strength of the economy.
Today, gold could fall further if the U.S. Gross Domestic Product (GDP) report shows a reading of better than the expected 3.1%. Last quarter the economy contracted by 2.9%, but this was attributed to bad weather. Later in the session, the Fed will release its latest monetary policy statement. Any hawkish comments by the central bank should also pressure gold futures.
Daily December Comex Gold
Technically, the main trend is down on the daily chart. The main range is $1241.70 to $1347.50. The retracement zone formed by this range is a key support area. This zone stopped the break late last week when gold reached $1289.40.
The short-term range is $1289.40 to $1314.60. The retracement zone of this range at $1302.00 to $1299.00 was tested on Tuesday. Holding this zone could produce a potentially bullish secondary higher bottom, however, a trade through it will likely lead to a test of $1289.40.
Yesterday, the market closed on the weakside of an uptrending angle at $1305.40 this week. The next support angle is $1297.40. This is followed by additional support angles at $1293.40 and $1291.40.
The daily chart indicates a trade through $1289.40 could trigger an acceleration down to a major Fib number at $1282.10. This level combines with the long-term angle at $1281.70 to form a support cluster.
On the upside, a breakout over $1314.60 is likely to trigger a rally into a resistance cluster at $1318.50 to $1319.50. This is followed by the Fibonacci level at $1325.30.
The tone of the market today is likely to be determined by investor reaction to $1302.00.
Originally posted here:
Comex Gold Futures (GC) Technical Analysis – July 30, 2014 …
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