Gold Price Futures (GC) Technical Analysis – Buyers Could Take Run at $1246.00 This Week

Gold is trading slightly better early Monday. A weaker U.S. Dollar is helping to underpin the market. The dollar is drifting lower because of higher equity markets. Traders who bought the dollar last week as a safe-haven asset are booking profits and squaring positions, making gold a more desirable asset.

At 0511 GMT, December Comex Gold futures are trading $1225.70, up $2.30 or +0.20%. Last week, the futures contract settled at $1223.20, up $0.20 or +0.02%.

Weekly Swing Chart Technical Analysis

The main trend is down according to the weekly swing chart, however, momentum is inching higher. A trade through $1246.00 will change the main trend to up. A move through $1167.10 will signal a resumption of the downtrend.

The minor trend is also down. However, a secondary higher minor bottom has formed at $1196.60. This could be a sign that the main trend is getting close to turning higher.

The short-term range is $1167.10 to $1246.00. Its retracement zone at $1206.60 to $1197.20 is support. This zone provided support the week-ending November 16 when buyers stopped the selling at $1196.60.

Intermediate 50% levels come in at $1222.70 and $1246.30.

The main range is $1388.10 to $1167.10. Its retracement zone at $1277.60 to $1303.70 is the primary upside target.

Weekly Swing Chart Technical Forecast

Based on last week’s close at $1223.20 and the earlier price action, the direction of the December Comex Gold futures contract this week is likely to be determined by trader reaction to the 50% level at $1222.70.

Bullish Scenario

A sustained move over $1222.70 will indicate the presence of buyers. If this move generates enough upside momentum then look for a drive into $1246.00 to $1246.30.

A trade through $1246.00 will change the main trend to up, while a move through $1246.30 is likely to trigger an acceleration to the upside with $1277.60 the next major upside target.

Bearish Scenario

A sustained move under $1222.70 will signal the presence of sellers. This could trigger a move into the short-term 50% level at $1206.60, followed by the short-term Fibonacci level at $1197.20.

Taking out $1196.60 will indicate the selling is getting stronger. This could trigger an acceleration to the downside with potential targets coming in at $1167.10 to $1162.00.

Stronger equity markets and a weaker U.S. Dollar could trigger a strong rally this week. The catalyst could be weaker-than-expected U.S. economic data and/or dovish U.S. Federal Reserve meeting minutes.