Gold Price Futures (GC) Technical Analysis – Traders Shrug-Off Weaker Dollar While Heading Toward Weekly Loss

Gold futures are edging lower late Friday despite a dip in the U.S. Dollar. Bullion is also trading lower for the week as the dollar-denominated, non-yielding asset struggled with the prospect of higher interest rates. Volume is on the light side as investors grapple with the risks of a recession and the Fed’s commitment to fighting inflation.

At 18:21 GMT, August Comex gold is trading $1827.10, down $2.70 or -0.15%. The SPDR Gold Shares ETF (GLD) is at $169.99, down $0.27 or -0.16%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through the nearest main bottom at $1806.10 will reaffirm the downtrend. A move through $1861.50 will change the main trend to up.

The minor trend is also down. A trade through $1850.30 will change the minor trend to up. This will also shift momentum to the upside.

The short-term range is $1792.00 to $1882.50. The market is currently trading inside its retracement zone at $1837.30 to $1826.60.

The main resistance is the long-term Fibonacci level at $1844.00. This is followed by the intermediate 50% level at $1854.80.

Daily Swing Chart Technical Forecast

Trader reaction to the short-term Fibonacci level at $1826.60 is likely to determine the direction of the August Comex gold futures contract into the close on Friday.

Bullish Scenario

A sustained move over $1826.60 will indicate the presence of buyers. If this move is able to generate enough upside momentum then look for a surge into the short-term 50% level at $1837.30. Sellers could come in on the first test of this level, but overtaking it could trigger a further rally into the long-term Fib level at $1844.00.

Bearish Scenario

A sustained move under $1826.60 will signal the presence of sellers. This could trigger a retest of the intraday low at $1817.70.

A trade through $1817.70 will indicate the selling pressure is getting stronger with the main bottom at $1806.10 the next major target.