Gold Price Futures (GC) Technical Analysis – Strengthens Over $1949.40, Weakens Under $1931.70 -

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 December Comex Gold

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.

Short-Term Outlook

Based on the early price action, the direction of the December Comexgold marketinto the close is likely to be determined by trader reaction to $1949.40 to $1931.70.

Bullish Scenario

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.

Bearish Scenario

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


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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