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James Hyerczyk
Gold Bars and Dollar

Gold futures are trading lower on Thursday as investors continue to adjust positions in reaction to yesterday’s comments from Federal Reserve Chairman Jerome Powell that suggest further rate cuts later this year were not a sure thing.

Today, traders will get the opportunity to react to the latest report on ISM Manufacturing PMI at 14:00 GMT. Traders are looking for a reading of 52.0. A weaker than expected number could help gold recover some of its losses. A stronger number will add to the current pressure.

At 13:31 GMT, December Comex gold is trading $1416.20, down $21.60 or -1.50%.

Daily December Comex Gold

Daily Technical Analysis

The main trend is down according to the daily swing chart. The trend turned down on Wednesday when sellers took out the main bottom at $1423.90. It was reaffirmed earlier today when $1413.70 was violated. The next two targets are main bottoms at $1399.80 and $1396.40.

The main trend changes to up on a move through $1447.80. This could lead to a test of the next main top at $1467.00.

The main range is $1396.40 to $1467.00. Its retracement zone is $1423.40 to $1431.70. Trading below this zone makes it resistance. On the downside, the nearest support zone is $1401.10 to $1385.50.

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Daily Technical Forecast

Based on the early price action and the current price at $1416.20, the direction of December Comex gold on Thursday is likely to be determined by trader reaction to the uptrending Gann angle at $1418.40.

Bearish Scenario

A sustained move under $1418.40 will indicate the presence of sellers. This could trigger a break into the next uptrending Gann angle at $1407.40. This is the last potential support angle before the major 50% level at $1401.10, and the main bottoms at $1399.80 and $1396.40.

Bullish Scenario

A sustained move over $1418.40 will signal the presence of buyers. This could trigger a move into the short-term Fibonacci level at $1423.40. This is followed by a downtrending Gann angle at $1431.00 and the short-term 50% level at $1431.70. This is a potential trigger point for an acceleration to the upside.

Overview

Besides the main trend indicator, a sustained move under the retracement zone at $1423.40 to $1431.70 should continue to give the market a downside bias.

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