Gold futures are trading lower at the mid-session after posting a mostly mixed performance earlier in the session. Buyers seem a little tentative despite a reversal to the downside by the U.S. Dollar against a basket of currencies and lower Treasury yields. Traders also showed little reaction to the disappointing Weekly U.S. Initial Claims report which came in higher than expected.
At 16:50 GMT, December Comex gold is trading $1950.10, down $20.20 or -1.03%.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. A trade through $2024.60 will signal a resumption of the uptrend. A move through $1874.20 will change the main trend to down.
The formation of the secondary lower top at $2024.60 suggests the selling may be greater than the buying at current price levels.
The short-term range is $2089.20 to $1874.20. Its retracement zone at $1981.70 to $2007.10 is potential resistance. This area essentially stopped the rally at $2024.60 on Tuesday.
The minor range is $1874.20 to $2024.60. Its retracement zone at $1949.40 to $1931.70 is new support. This area stopped the selling earlier today.
The main range is $1690.10 to $2089.20. Its retracement zone at $1889.70 to $1842.60 is major support. This area stopped the selling at $1874.20 on August 12.
Based on the early price action, the direction of the December Comex gold market into the close is likely to be determined by trader reaction to $1949.40 to $1931.70.
A sustained move over $1949.40 will indicate the presence of buyers. If this move creates enough upside momentum then look for a potential rally into the next 50% level at $1981.70.
A sustained move under $1931.70 will signal the presence of sellers. If this move generates enough downside momentum then look for a possible break into the major 50% level at $1889.70.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
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