Gold Price Futures (GC) Technical Analysis – Bullish Over $1276.70, Bearish Under $1274.80

December Comex Gold futures are trading higher on Monday. The market may be picking up a bid because of a weaker stock market. The early trade action suggests investors are selling higher risk assets and moving money into the safe haven gold market.

Daily Technical Analysis

The main trend is down according to the daily swing chart. However, the market appears to be forming a support base which suggests momentum may be getting ready to shift to the upside.

A trade through $1263.80 will signal a resumption of the downtrend. A move through $1262.80 will indicate the selling is getting stronger with the next major target the August 8 bottom at $1257.10.

The minor trend will change to up on a trade through $1289.50. The main trend will change to up on a move through $1292.90. This will put the market in a position to challenge the next main top at $1308.40.

Gold is also trading inside a major retracement zone bounded by $1286.80 to $1268.90. This zone is controlling the longer-term direction of the market.

The short-term range is $1263.80 to $1289.50. Its 50% level or pivot is $1276.70. Gold is currently straddling this level.

Daily Technical Forecast

Based on the early trade, the direction of the gold market today is likely to be determined by trader reaction to the short-term pivot at $1276.70.

A sustained move over $1276.70 will indicate the presence of buyers. If this move attracts enough buyers then we could see an acceleration to the upside with the next targets a 50% level at $1286.80 and a downtrending angle at $1288.40.

Since the trend is down, we could see sellers come in on a test of $1286.80 to $1288.40. However, $1288.40 is also a trigger point for an acceleration to the upside with the first target $1289.50, followed by $1292.90.

A sustained move under $1276.70 will signal the presence of sellers. This is followed by an uptrending angle at $1274.80.

The market opens up to the downside under $1274.80 with the next target an uptrending angle at $1269.30 and the main Fibonacci level at $1268.90.

Basically, look for a bullish tone to develop on a sustained move over $1276.70 and for a bearish tone to develop on a sustained move under $1274.80.