Gold Price Futures (GC) Technical Analysis – Bullish Over $1296.40, Bearish Under $1290.00

Concerns over the passing of the tax reform bill before the end of the year, falling Treasury yields and a drop in demand for higher-yielding assets helped drive December Comex Gold futures up 1.43% on Friday. These factors are likely to continue to influence gold prices this week, however, low holiday volume may limit the volatility and price action.

The main trend is up according to the daily swing chart. The trend turned up last week when gold surged through the previous top at $1289.50. It was reaffirmed on Friday when buyers took out the $1292.90 main top. If the upside momentum continues then the next upside target will be the October 16 main top at $1308.40.

A trade through $1269.70 will change the main trend to down with potential targets coming in at $1263.80, $1262.80 and $1257.10.

The short-term range is $1317.10 to $1262.80. Its retracement zone at $1290.00 to $1296.40 is currently being tested. Trader reaction to this zone will set the short-term tone.

The main range is $1362.40 to $1262.80. If the upside momentum continues then look for a possible extension of the rally into its retracement zone at $1312.60 to $1324.40.

Watch the price action and read the order flow at $1290.00 to $1296.40 today. Trader reaction to this zone will tell us if the buyers or sellers are in control.

Volume is expected to be light because this is a holiday week with the U.S. celebrating Thanksgiving on Thursday. So be careful buying strength or selling weakness. Make sure volume is on your side when you buy or sell.