Gold Price Futures (GC) Technical Analysis – $1517.50 Controlling Direction; $1479.10 to $1453.50 Value Zone

Based on the early price action and the current price at $1512.10, the direction of the December Comex gold futures contract on Wednesday is likely to be determined by trader reaction to the pivot at $1517.50.
James Hyerczyk
Comex Gold

Gold prices are trading slightly lower on Wednesday following yesterday’s rebound rally and higher close. This week’s price action suggests traders are just making a market ahead of the release of the Fed minutes from its monetary policy meeting last month. Traders are particularly sensitive to the direction of U.S. Treasury yields and demand for risk.

At 05:26 GMT, December Comex gold futures are trading $1512.10, down $3.60 or -0.24%.

The Fed minutes could determine the tone of the market into Friday’s speech by Fed Chair Jerome Powell at the Jackson Hole, Wyoming, central bankers’ symposium. In July, the central bank cut rates by 25 basis points, citing “global developments” and “muted inflation.” Traders will be looking for clues as to how aggressive policymakers are will to be to prevent a U.S. recession. Dovish Fed minutes will be bullish for gold, hawkish will be bearish. However, the price action could be limited if enough of the major players decide to sit on the sidelines ahead of Powell’s speech.

Daily December Comex Gold

Daily Technical Analysis

The main trend is up according to the daily swing chart, however, momentum has been trending sideways to lower since the formation of the closing price reversal top on August 13 at $1546.10.

A trade through $1546.10 will negate the closing price reversal top and signal a resumption of the uptrend. A move through $1488.90 will confirm the closing price reversal top and the shift in momentum to down.

The minor range is $1546.10 to $1488.90. Its 50% level or pivot at $1517.50 has been controlling the direction of the gold market for six consecutive trading sessions. This indicates investor indecision and impending volatility. It also means traders are waiting for news.

The short-term range is $1412.10 to $1546.10. Its retracement zone at $1479.10 to $1463.30 is the first downside target.

The intermediate range is $1396.40 to $1546.10. Its retracement zone at $1471.30 to $1453.60 is the second downside target.

The short-term retracement zone actually overlaps the 50% level of the intermediate retracement zone at $1471.30. This indicates solid support.

Daily Technical Forecast

Based on the early price action and the current price at $1512.10, the direction of the December Comex gold futures contract on Wednesday is likely to be determined by trader reaction to the pivot at $1517.50.

Bullish Scenario

A sustained move over $1517.50 will indicate the presence of buyers. If this creates enough upside momentum then look for buyers to make a run at $1546.10. This is a potential trigger point for an acceleration to the upside.

Bearish Scenario

A sustained move under $1517.50 will signal the presence of sellers. The daily chart shows that sellers have a clear shot at $1488.90. If this fails then look for a labored break into the series of retracement levels at $1479.10, $1471.30, $1463.30 and $1453.60.

Since the main trend is up, buyers will be looking for value. The value zone is pretty wide at $1479.10 to $1453.60.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.