Gold Price Futures (GC) Technical Analysis – 50% Level at $1512.40 Key Level to Watch Monday

It all comes down to how traders respond to the retracement zone at $1512.40 to $1526.40.
James Hyerczyk
Gold Bars and Dollar

Gold finished higher on Friday after hitting its highest level since November 4 earlier in the session. The market also put in its best weekly performance in more than four months. Some traders are saying gold is being driven higher by a weaker U.S. Dollar as investors liquidate safe-haven hedge positions in the greenback.

Others are saying gold is being supported by uncertainty over the U.S.-China trade deal as investors seek more details about the plan. Still others have doubts about the rally and are calling it end of the year position-squaring. Furthermore, they feel that there is just too much demand for risky assets to sustain any rally in gold.

Last week, February Comex gold settled at $1518.10, up $3.70 or +0.24%.

Daily February Comex Gold

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed on Friday when buyers took out the previous session’s high. The main trend will change to down on a move through the last swing bottom at $1463.00.

We’re not looking for a change in trend over the near-term, but there is room to the downside for a normal 50% to 61.8% correction.

Additionally, due to the prolonged move up in terms of price and time, the market is in the window of time for a closing price reversal top. If confirmed, this chart pattern could trigger the start of a 2 to 3 day correction.

The main range was formed by the September 4 main top at $1571.70 and the November 12 main bottom at $1453.10. Its retracement zone at $1512.40 to $1526.40 is currently being tested. This zone is controlling the near-term direction of the market.

Daily Gann Angle Technical Analysis

On Friday, February Comex gold closed on the strong side of an uptrending Gann angle at $1515.10. This angle is moving up at a rate of $2.00 per day from the $1453.10 main bottom.

Holding above this uptrending Gann angle could generate the upside momentum needed to test the nearest downtrending Gann angle at $1531.70.

A failure to hold above $1531.70 will indicate the buying is getting weaker or the selling is getting stronger. This could trigger an acceleration to the downside since the nearest support angle comes in at $1484.10.

Short-Term Outlook

It all comes down to how traders respond to the retracement zone at $1512.40 to $1526.40.

Holding inside the zone will indicate a neutral to upside bias.

Overtaking and sustaining a rally over the upper or Fibonacci level at $1526.40 will signal the buying is getting stronger, while a sustained move under the lower or 50% level at $1512.40 will indicate the presence of sellers. This could trigger the start of a steep break.

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
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.