Gold Price Futures (GC) Technical Analysis – Could Strengthen Over $1800.00, Weaken Under $1795.00

Gold futures hit a one-month high on Thursday as a dip in U.S. Treasury yields capped the U.S. Dollar, driving up demand for the dollar-denominated asset.

Bullish traders continued to take their cues from rising U.S. inflation while shrugging off expectations for the Federal Reserve to start tapering its massive stimulus by mid-November.

On Thursday, December Comex gold settled at $1797.90, up $3.20 or +0.18%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through $1801.90 early Friday will signal a resumption of the uptrend. A move through $1745.40 will change the main trend to down.

The minor trend is also up. A trade through $1792.90 will change the minor trend to down and shift momentum to the downside.

Based on the close at $1797.90, the nearest resistance is a 50% level at $1800.00. The nearest support is a 50% level at $1795.00.

Daily Swing Chart Technical Forecast

The direction of the December Comex gold market early Friday is likely to be determined by trader reaction to $1800.00 and $1795.00.

Bullish Scenario

A sustained move over $1800.00 will indicate the presence of buyers. If this move creates enough upside momentum then look for a drive into the next main top at $1810.60.

Taking out $1810.60 will reaffirm the uptrend and could trigger an acceleration to the upside with the next major target a long-term Fibonacci level at $1828.80, followed by a main top at $1836.90 and the July 15 main top at $1839.00.

Bearish Scenario

A sustained move under $1795.00 will signal the presence of sellers. If this move generates enough downside momentum then look for a sharp break into a 50% level at $1779.00.

Buyers could come in on the first test of $1779.00, but if it fails we could see further downside pressure with $1765.90 the next likely target.

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