Gold Price Forecast – August 6, 2020

Gold Near-Term Outlook

The December 2020 gold futures contract finally settled above the crucial $2050 target today. This is bullish for the near-term outlook and clears the way for at least $2091 and possibly $2130. These are the next potential stalling points because they are the larger than (1.618) target of the primary wave up from $1690.1 and the intermediate (1.382) target of the primary wave up from $1458.8, respectively.

Gold – Daily Candlesticks with RSI and KasePO Momentum Oscillators

The daily RSI and KasePO momentum oscillators are overbought. Otherwise, there are no confirmed bearish reversal patterns, signals, or setups that call for the move up to stall before reaching at least $2091.

Nevertheless, should gold fall below $2049 look for a test of $2021. This is the 38 percent retracement of the move up from the last major intra-day swing low of $1927.5. Support at $2021 is expected to hold. Settling below this will call for a deeper test of support where $1990, the 62 percent retracement, is most important for the near-term outlook.

This is a brief analysis for the next day or so. Our weekly Metals Commentary and daily updates are much more detailed and thorough energy price forecasts that cover key COMEX precious metals futures contracts and LME Non-Ferrous (Base) metals, spot gold, the gold/silver ration, and gold ETFs. If you are interested in learning more, please sign up for a complimentary four-week trial.

Published by

Dean Rogers, CMT

Dean Rogers, CMT is the general manager of the Kase Call Center in Albuquerque, New Mexico. He oversees all of Kase and Company, Inc.’s operations including research and development, marketing, and client support. Dean began his career with Kase in early 2001 as a programmer but has developed into Kase’s senior technical analyst. He writes Kase’s award-winning weekly Crude Oil, Natural Gas, and Metals Commentaries. He is an instructor at Kase's classes and webinars and provides all of the necessary training and support for Kase's hedging models and trading indicators for both retail and institutional traders.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.