Gold Price Futures (GC) Technical Analysis – Buyers Trying to Build Support Base on $1815.30 Pivot

Gold futures are inching higher on Wednesday with gains capped by a slight uptick in the U.S. Dollar Index, while weaker Treasury yields are providing support.

Volume and volatility remained dampened by general uncertainty ahead of Friday’s U.S. Non-Farm Payrolls report, but we could see some movement today when ADP releases its private sector jobs data at 12:15 GMT.

At 11:42 GMT, December Comex gold futures are trading $1821.00, up $6.90 or +0.38%.

Today’s ADP report is expected to show the private sector of the economy added 695K new jobs in July. Traders will also be watching today’s ISM Services PMI report. It is expected to nudge higher to 60.5 from 60.1.

FOMC Member Richard Clarida is also expected to speak at 14:00 GMT.

Since the Fed doesn’t meet until September 21-22, gold traders are likely to be more sensitive to economic reports and Fed speaker comments.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through $1839.00 will signal a resumption of the uptrend. A move through the pair of main bottoms at $1795.60 and $1793.10 will change the main trend to down.

The minor range is $1793.10 to $1837.50. The market has been straddling its pivot at $1815.30 for five straight sessions.

On the downside, the major support is a long-term 50% level at $1795.00.

On the upside, the nearest target and potential resistance zone is $1839.90 to $1859.70.

Daily Swing Chart Technical Forecast

The direction of the December Comex gold futures contract on Wednesday is likely to be determined by trader reaction to $1815.30. However, don’t expect much movement unless there is a pick-up in volume.

Bullish Scenario

A sustained move over $1815.30 will indicate the presence of buyers. If this move is able to generate enough upside momentum then look for a possible test of the price cluster at $1837.00 to $1839.90.

Bearish Scenario

A sustained move under $1815.30 will signal the presence of sellers. If this move is able to create enough downside momentum then look for the selling to possibly extend into the support cluster at $1795.60 to $1793.10.