Gold Price Futures (GC) Technical Analysis – Chart Pattern Suggests Way of Least Resistance is Up

Gold futures closed lower on Thursday after posting a choppy, two-sided trade. The market rose early in the session as investors expressed concerns over the lack of clarity from the Federal Reserve on how it plans to deal with rising inflation. The market topped and prices turned lower later in the session as Treasury yields rose and the U.S. Dollar firmed.

On Thursday, December Comex gold futures settled at $1781.90, down $3.00 or -0.17%.

U.S. benchmark 10-year Treasury yields climbed to a five-month peak as a quickly recovering economy renewed questions about when the Federal Reserve will raise interest rates.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through $1801.90 will signal a resumption of the uptrend. A move through $1760.30 will change the main trend to down.

Gold is currently trapped inside a series of retracement levels. This is helping to hold the market in a trading range, while producing a choppy trade.

Based on the close at $1781.90, potential support levels are a series of 50% levels at $1779.00, $1773.70, $1765.90, $1761.50 and $1757.40.

On the upside, a pair of 50% levels at $1795.00 and $1800.00 are potential resistance.

The current chart pattern suggests $1800.00 and $1757.40 are potential breakout levels.

Daily Swing Chart Technical Forecast

The direction of the December Comex gold market early Friday is likely to be determined by trader reaction to $1779.00.

Bullish Scenario

A sustained move over $1779.00 will indicate the presence of buyers. The first potential upside target is $1790.30. This is followed by a 50% level at $1795.00 and a resistance cluster at $1800.00 – $1801.90.

Bearish Scenario

A sustained move under $1779.00 will signal the presence of sellers. This could lead to a labored break with the next likely downside targets lined up at $1773.70, $1765.90 and a support cluster at $1761.50 – $1760.30.