Gold Price Futures (GC) Technical Analysis – Could See Near-Term Consolidation Between $1716.00 and $1757.70

Gold futures are edging higher on low volume late in the session on Tuesday as the market continues to adjust to the steep two-day sell-off on Friday and Monday. The size of the move seems to have upset the equilibrium in the market, which could lead to days of consolidation to allow traders to lick their wounds and reestablish positions.

Weighing on the market are rising Treasury yields and a stronger U.S. Dollar. According to Reuters, uncertainties from rising COVID-19 infections could be underpinning prices.

At 20:07 GMT, December Comex gold is trading $1729.60, up $3.10 or +0.18%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through $1677.90 will signal a resumption of the downtrend. A move through $1837.50 will change the main trend to up.

On Monday, the market plunged to $1677.90 then rebounded to $1754.00. The retracement zone of this move is $1716.00 to $1707.00. This is potential counter-trend support.

The short-term range is $1837.50 to $1677.90. Its retracement zone at $1757.70 to $1776.50 is the primary upside target and potential resistance area.

On the downside, potential support is a long-term Fibonacci level at $1716.00.

Daily Swing Chart Technical Forecast

We’re looking for near-term consolidation with $1716.00 potential support. Watch for aggressive counter-trend buyers on a test of this level. This price is also a potential trigger point for an acceleration to the downside with $1683.00 to $1677.90 the next potential downside target.

On the upside, a test of the retracement zone at $1757.70 to $1776.50 is likely to bring in new sellers since the main trend is down. If $1776.50 fails as resistance then look for the rally to possibly extend into $1795.00 to $1800.60.