Gold Price Futures (GC) Technical Analysis – Bullish Tone Over $1301.30 On North Korean Concerns

December Comex Gold futures dipped early in the session on Monday on concerns over a fractured parliament in Germany, but recovered after stocks and U.S. Treasury yields declined. Both fell after North Korea’s foreign minister Ri Yong Ho said U.S. President Donald Trump had declared war on North Korea. Ri added that North Korea has the right to shoot down strategic U.S. bombers even if they are not in North Korean airspace.

Daily Technical Analysis

The main trend is down according to the daily swing chart. The next potential downside target is the main bottom at $1281.30. Overcoming the former bottom at $1302.30 will indicate a short-covering rally is taking place.

The main range is $1281.30 to $1362.40. If a short-covering rally gains traction then look for the move to extend into its 50% level at $1321.90.

Daily Forecast

Based on the earlier price action, the direction of the market the rest of the session is likely to be determined by trader reaction to a pair of uptrending angles at $1301.30 and $1291.30.

Taking out $1301.30 and sustaining the move will indicate the presence of buyers. The daily chart indicates there is room to the upside so we could see an acceleration into resistance clusters at $1318.40 to $1319.10 then $1321.30 to $1321.90.

A failure to overcome $1301.30 will indicate that sellers are defending the down trend. This could drive the market into the next uptrending angle at $1291.30. This is the last support angle before the $1281.30 main bottom.

Look for a bullish tone to develop over $1301.30 if the situation between the U.S. and North Korea escalates.