Gold Price Futures (GC) Technical Analysis – Cautious Trade Inside Long-Term Resistance Zone

Gold futures are edging lower on Tuesday in a choppy, low-volume trade as investors remain cautious ahead of the Bank of Japan (BOJ) and the European Central Bank (ECB) monetary policy meetings this week and next week’s Federal Reserve and Bank of England policy decisions next week.

Despite recent strength, today’s early price action suggests investor indecision due to uncertainty over the timing of central bank rate hikes amid rising inflation concerns.

At 10:36 GMT, December Comex gold futures are trading $1803.60, down $3.20 or -0.18%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through $1815.50 will signal a resumption of the uptrend. A move through $1760.30 will change the main trend to down.

The market is currently trading on the strong side of a long-term 50% level at $1800.00, making it support. This is followed by a series of potential support levels at $1795.00, $1787.90 and $1780.50.

The major 50% support levels come in at $1768.30 and $1757.40.

On the upside, the nearest resistance is a long-term Fibonacci level at $1828.80.

Daily Swing Chart Technical Forecast

The direction of the December Comex gold futures market on Tuesday is likely to be determined by trader reaction to $1800.00.

Bullish Scenario

A sustained move over $1800.00 will indicate the presence of buyers. If this move is able to generate enough upside momentum then look for a surge into last week’s one-month high at $1815.50. Taking out this level will indicate the buying is getting stronger. This could trigger a further rally into the Fibonacci level at $1828.80.

Bearish Scenario

A sustained move under $1800.00 will signal the presence of sellers. This could lead to the start of a labored break with potential support levels lined up at $1795.00, $1787.90 and $1780.50.

Buyers could step in at any one of these levels, but if $1780.50 fails then look for the selling to possibly extend into $1768.30. This is the last potential support before the $1760.30 main bottom.