Gold Price Futures (GC) Technical Analysis – Could Spike Higher if Democrats Move to Impeach Trump

Gold futures are trading higher on Tuesday on general concerns over U.S.-China trade relations and worries about Brexit. However, early demand for risky assets was putting a lid on prices.

We could see a volatile trade during the extended session because of whipsaw action in the stock and Treasury markets. Stocks broke sharply and yields fell after House Speaker Nancy Pelosi said she will make an announcement on possibly beginning impeaching proceedings on President Trump.

However, stocks rebounded from their lows after Trump said he will release the full transcript of his phone call with Ukraine President Volodymyr Zelensky, where he allegedly pressured him to investigate Democratic presidential hopeful Joe Biden’s family.

A spokesman for the former vice president said Biden will urge Trump to comply with congressional requests for information. The spokesman added that Biden thinks Congress has no choice but to impeach Trump if he does not comply. Trump has admitted to talking to Zelensky about Biden but denied pressuring him.

Gold could spike to the upside late in the session or early Wednesday if Pelosi decides to start impeachment proceeding against Trump. Gold could weaken if she decides not too or if stocks and Treasury yields rebound into the close.

At 18:46 GMT, December Comex gold futures are trading $1539.80, up $8.10 or +0.54%.

Daily Technical Analysis

The main trend is down according to the daily swing chart, however, momentum is trending lower. A trade through $1566.20 will change the main trend to up. A move through $1490.70 will signal a resumption of the downtrend.

The minor trend is up. This is driving the upside momentum.

The short-term range is $1566.20 to $1490.70. The market is currently trading on the strong side of its retracement zone at $1528.50 to $1537.40. This is helping to generate today’s late session upside bias.

The main support is a retracement zone at $1489.10 to $1471.00.

Daily Technical Forecast

Based on the early price action and the current price at $1539.80, the direction of the December Comex gold market into the close is likely to be determined by trader reaction to the price cluster at $1537.40 to $1538.30.

Bullish Scenario

A sustained move over $1538.30 will indicate the presence of buyers. This could trigger a surge into the next downtrending Gann angle at $1552.30.

Taking out $1552.30 will indicate the buying is getting stronger with the next targets a downtrending Gann angle at $1559.30 and an uptrending Gann angle at $1560.70.

Crossing to the strong side of the angle at $1560.70 will put the market in a bullish position.

Bearish Scenario

A sustained move under $1537.40 will signal the presence of sellers. If this move creates enough late session pressure then look for the selling to possibly extend into the short-term 50% level at $1528.50 and an uptrending Gann angle at $1522.70.

Overview

Watch for a possible spike to the upside later today or early Wednesday if Pelosi decides to move forward with impeachment proceedings.