FXEMPIRE
All
Ad
Corona Virus
Stay Safe, FollowGuidance
World
62,438,666Confirmed
1,456,099Deaths
43,102,713Recovered
Fetching Location Data…
Advertisement
Advertisement
James Hyerczyk
Comex Gold

Gold futures edged higher on Tuesday as the dollar weakened and hopes for a U.S. coronavirus aid package ahead of the presidential election boosted bullion’s appeal as an inflation hedge.

U.S. House of Representatives Speaker Nancy Pelosi and Treasury Secretary Steve Mnuchin “continued to narrow their differences” on the stimulus package, Pelosi’s spokesman Drew Hammill said.

On Tuesday, December Comex gold settled at $1915.40, up $3.70 or +0.19%.

The U.S. Dollar Index slipped 0.4% against its rivals to its lowest since September 21, making gold less expensive for holders of other currencies.

Daily December Comex Gold

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, momentum is trending lower. The main trend will change to down on a trade through $1885.00. A move through $1939.40 will reaffirm the uptrend.

The minor trend is down. This is controlling the downside momentum. A trade through $1923.40 will change the minor trend to up, reversing momentum to the upside.

From the bottom up, the major support is the retracement zone at $1889.70 to $1842.60. This zone stopped the selling at $1851.00 on September 24, at $1877.10 on October 7 and at $1885.00 on October 14.

The first minor range is $1851.00 to $1939.40. Its retracement zone at $1895.20 – $1880.00 is support.

The second minor range is $1877.10 to $1939.40. Its 50% level at $1902.10 is another support level.

The short-term range is $1983.80 to $1851.00. Its 50% level at $1917.40 is resistance. Overcoming this level will indicate the buying is getting stronger.

The intermediate range is $2089.20 to $1851.00. Its retracement zone at $1970.10 to $1998.20 is the primary upside target area.

Advertisement

Short-Term Outlook

We’re in a headline driven market, which usually means we watch for a breakout.

Bullish Scenario

A new fiscal stimulus deal will be bullish news. Overtaking $1917.40 will indicate the presence of buying. Taking out $1923.40 could trigger an acceleration to the upside with the next target the main top at $1939.40.

The main top at $1939.40 is another potential trigger point for an upside breakout. This could create the momentum needed to challenge the short-term 50% level at $1970.10.

Bearish Scenario

A sustained move under $1902.10 will signal the presence of sellers. This could lead to a labored break with potential downside targets coming in at $1889.70, $1885.00, $1880.00 and $1877.10. The latter is a potential trigger point for an acceleration to the downside.

For a look at all of today’s economic events, check out our economic calendar.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
IMPORTANT DISCLAIMERS
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.
RISK DISCLAIMER
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.
FOLLOW US