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Gold prices are trading lower shortly after the regular session opening. The market is being pressured by a stronger U.S. Dollar, which makes the dollar-denominated asset less-desirable to foreign buyers. Perhaps providing some support is another plunge in U.S. Treasury yields and lower demand for higher risk assets, but this is unclear at this time. Gold also doesn’t appear to be attracting any safe-haven cash at that time.
At 12:46 GMT, August Comex gold is trading $1282.80, down $6.40 or -0.50%.
Daily Technical Analysis
The main trend is up according to the daily swing chart, however, momentum is trending lower. The main trend will change to down on a trade through $1274.60. Taking out the next main bottom at $1273.20 will reaffirm the downtrend. Gold will have to take out $1310.10 to reaffirm the uptrend.
The major support is a retracement zone at $1208.80 to $1261.70. The major resistance is $1307.70.
The main range is $1310.10 to $1274.60. Its retracement zone at $1292.30 to $1296.50 is also resistance.
The short-term range is $1274.60 to $1292.60. Its 50% level or pivot at $1283.60 is controlling the near-term direction of the market.
Daily Technical Forecast
Based on the early price action and the current price at $1282.80, the direction of the August Comex gold market the rest of the session is likely to be determined by trader reaction to the short-term pivot at $1283.60.
Bullish Scenario
A sustained move over $1283.60 will indicate the presence of buyers. Overtaking the uptrending Gann angle at $1284.60 will indicate the buying is getting stronger. This could trigger a retest of the downtrending Gann angle at $1290.10. Overtaking this angle could extend the rally into the retracement zone at $1292.30 to $1296.50.
Bearish Scenario
A sustained move under $1283.60 will signal the presence of sellers. The next targets are a major 50% level at $1280.80, followed by an uptrending Gann angle at $1279.60. If this angle fails then look for the selling to extend into the next uptrending Gann angle at $1277.10. This is the last potential support angle before the main bottoms at $1274.60 and $1273.20.
This article was originally posted on FX Empire