Gold futures are inching lower on Monday shortly ahead of the regular session opening at 12:00 GMT. Earlier in the session, Reuters reported that gold prices rose as riots in major U.S. cities rattled investors already reeling from strained Sino-U.S. ties and boosted demand for the safe-metal, with a weaker dollar lending further support.

At 10:00 GMT, August Comex gold is trading $1749.00, down $2.70 or -0.15%.

If you believe Reuters’ excuse for the early rally then the violent protests in 22 U.S. cities was worth about $9.30.

However, what they should have said is the protests and violence are probably not good for the fragile U.S. economy at this time as the country struggles to open up after strict lockdowns.

Gold is getting underpinned by lower Treasury yields and a weaker U.S. Dollar, while firm global equity markets are likely helping to cap gains.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. However, momentum has been trending lower since the formation of the closing price reversal top on May 18.

A trade through $1701.60 will change the main trend to down, while a move through $1787.50 will negate the closing price reversal top and signal a resumption of the uptrend.

The minor trend is down. This is weighing on momentum. A trade through $1770.10 will change the main trend to up.

The minor range is $1787.50 to $1701.60. Its retracement zone at $1744.10 to $1754.30 is potential resistance.

The short-term range is $1789.00 to $1668.40. Its 50% level at $1728.70 is acting like resistance.

Daily Swing Chart Technical Forecast

Based on the early price action and the current price at $1749.00, the direction of the August Comex gold market the rest of the session on Monday is likely to be determined by trader reaction to $1744.10 to $1754.30.

Bullish Scenario

A sustained move over $1754.30 will signal the presence of buyers. If this move can create enough upside momentum then look for buyers to make a run at $1770.10. Taking out this level will shift momentum to the upside and put the market in a position to challenge the two main tops at $1787.50 and $1789.00.

Bearish Scenario

A sustained move under $1744.10 will indicate the presence of sellers. This will put the market in a position to form a potentially bearish secondary lower top.

If a move under $1744.10 can generate enough downside momentum then look for a potential break into the 50% level at $1728.70. This is a potential trigger point for an acceleration into the main bottom at $1701.60.

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