Gold Price Futures (GC) Technical Analysis – Bullish Over $1794.30. Bearish Under $1781.00

Gold futures are trading slightly lower early Tuesday as investors position themselves ahead of Wednesday’s U.S. Federal Reserve monetary policy decisions. The sideways price action is being fueled by investor indecision. The market is being underpinned by lower bond yields, but capped by a stronger U.S. Dollar.

At 09:07 GMT, February Comex gold futures are trading $1785.00, down $3.30 or -0.18%. On Tuesday, the SPDR Gold Shares ETF (GLD) settled at $166.97, up $0.39 or +0.23%.

The dollar firmed, making bullion more expensive for buyers holding other currencies, while U.S. Treasury yields hovered near a one-week trough touched in the previous session.

The Fed will begin its two-day monetary policy meeting later in the day, and it is expected to announce wrapping up its bond buying stimulus sooner than previously communicated, potentially setting up earlier interest rate hikes next year.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing, however, momentum is trending higher.

A trade through $1794.30 will reaffirm the uptrend. A move through $1770.40 will change the main trend to down. Taking out additional main bottoms at $1762.20 and $1761.00 will reaffirm the downtrend.

The main range is $1723.70 to $1881.90. Its retracement zone at $1781.00 to $1757.10 is the major support area controlling the direction of the market.

The minor range is $1819.30 to $1762.20. Its 50% level at $1790.80 is resistance and a potential trigger point for an acceleration to the upside.

The short-term range is $1881.90 to $1762.20. Its 50% level at $1822.10 is the primary upside target.

Daily Swing Chart Technical Forecast

The direction of the February Comex gold futures contract on Tuesday is likely to be determined by trader reaction to $1790.80 and $1781.00.

Bullish Scenario

A sustained move over $1790.80 will indicate the presence of buyers. This could lead to a test of the main top at $1794.30.

The main top at $1794.30 is a potential trigger point for an acceleration to the upside with the next major target area $1819.30 – $1822.10.

Bearish Scenario

A sustained move under $1781.00 will signal the presence of sellers. Taking out this level could trigger a break into the main bottom at $1770.40.

Taking out $1770.40 will change the main trend to down and could create the momentum needed to challenge the pair of main bottoms at $1762.20 and $1761.00. They are the last potential support before the major Fibonacci level at $1757.10.

The Fibonacci level at $1757.10 is a potential trigger point for an acceleration into the September 29 main bottom at $1723.70.