Gold futures are trading higher shortly before the regular session opening at 12:00 GMT. The early rally drove the market into a new multi-year high. The rally was fueled by a drop in U.S. Treasury yields. This made the U.S. Dollar a less-desirable investment. The Euro also rallied as investors continued to price in a Fed rate cut in late July.
At 10:12 GMT, August Comex Gold is trading $1433.00, up $14.80 or +1.04%. The high of the session is $1442.90.
Gold prices started to retreat from its high after the Euro reversed to the downside and turned lower for the session. This drove the U.S. Dollar index higher, encouraging gold investors to book profits.
Daily Technical Analysis
The main trend is up according to the daily swing chart. There is no resistance at this time so investors should watch for a closing price reversal top to signal the presence of sellers.
Daily Technical Forecast
The market is currently trading inside a steep uptrending channel.
If buyers continue to drive prices higher then look for a move into today’s intraday high at $1442.90. Taking out this level could trigger an extension of the rally into a steep uptrending Gann angle at $1466.50. Overtaking this angle will put the market in an extremely bullish position.
If sellers take control then look for a potential move into the uptrending support angle at $1403.60. Since the main trend is up, buyers are likely to come in on a test of this angle.
If $1403.60 fails then look for selling pressure to increase. If this move creates enough downside momentum then look for the selling to possibly extend into the next uptrending Gann angle at $1370.60. This is followed closely by a short-term uptrending Gann angle at $1363.60.
A closing price reversal top today will signal the selling is greater than the buying at current price levels. It could lead to a 2 to 3 day sell-off. This won’t change the trend to down, but it could alleviate some of the upside pressure.
This article was originally posted on FX Empire
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