Gold Price Futures (GC) Technical Analysis – Counter-Trend Buyers Continue to Defend $1193.90 to $1187.50 Support

Gold futures closed lower on Wednesday mostly in reaction to the Fed’s widely expected rate hike. However, there was a little improvement late in the session after the initial reaction to the news as traders interpreted the Fed’s monetary policy statement and comments from Fed Chair Jerome Powell as dovish.

Gold could pick up a bid on Thursday if investors continue to price in a dovish Fed. Furthermore, the market could get support from lower Treasury yields, a softer U.S. Dollar and a drop in demand for higher-yielding assets.

On Wednesday, December Comex Gold futures settled at $1199.10, down $6.00 or -0.50%. This is up from a low of $1194.60.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. The downtrend was reaffirmed on Wednesday when sellers took out last week’s low at $1196.00. The selling stopped, however, slightly above a key 50% level at $1193.90 and a main bottom at $1192.70.

The main trend will change to up on a trade through $1215.80.

On the upside, the retracement zone at $1205.90 to $1215.10 remains resistance. On the downside, the support zone is $1193.90 to $1187.50.

Daily Swing Chart Technical Forecast

Gold is still rangebound with support levels lined up at $1193.90, $1192.70, $1189.50 and $1187.50. Technically, the trigger point for an acceleration to the downside is $1187.50. This is because under this level, there is no support until $1167.10.

On the upside, the first target is $1205.90. This is a short-term trigger point for an acceleration into $1215.10 and $1215.80. These levels are followed by potential resistance at $1218.00, $1220.70 and $1222.70. The latter is the trigger point for an acceleration into $1235.80.

If buyers continue to come in to defend $1193.90 to $1187.50, then this could generate enough counter-trend momentum to fuel a rally into $1205.90 then possibly $1215.10.