Gold Price Futures (GC) Technical Analysis – Evidence of Accumulation Inside Potentially Bullish Rectangular Chart PatternThe market has been forming a rectangular chart pattern with a slight upside bias since bottoming at $1453.10 on November 12. The two higher bottoms at $1456.60 and $1463.00 and the two higher tops at $1489.90 and $1491.60 could be a sign of accumulation.
Gold prices are trading higher late in the session on Friday after posting a wild two-sided trade throughout the session. The U.S. Dollar is trading higher, stocks are trading mixed to higher, and U.S. Treasury yields are plunging, making gold a more attractive asset.
The catalysts behind the potentially bullish price action are caution over the developments in the United States and China trade negotiations, and political uncertainties in the Washington.
At 20:17 GMT, February Comex gold is trading $1480.70, up $8.40 or +0.57%.
The lack of details over the trade deal is causing a lot of concern that the two economic powerhouses are not as far along in the trade deal as investors would like. Additionally, a Democratic-controlled U.S. House of Representatives committee approved charges of abuse of power and obstruction against Republican President Donald Trump on Friday, making it almost certain he will become the third American president in history to be impeached.
Daily Technical Analysis
The main trend is up according to the daily swing chart. A trade through $1463.00 will change the main trend to down. A move through $1491.60 will signal a resumption of the uptrend.
The short-term range is $1453.10 to $1491.60. Its retracement zone at $1472.40 to $1467.80 is acting like support.
The main range is $1525.20 to $1453.10. Its retracement zone at $1489.20 to $1497.70 is resistance. Taking out this zone could trigger a breakout to the upside.
The market has been forming a rectangular chart pattern with a slight upside bias since bottoming at $1453.10 on November 12. The two higher bottoms at $1456.60 and $1463.00 and the two higher tops at $1489.90 and $1491.60 could be a sign of accumulation.
Furthermore, it is often said that the height of the rally is determined by the length of the base. As long as the support base holds then we could see a breakout and an acceleration to the upside.
Look for the market to strengthen on a move over the Fibonacci level at $1497.70. Watch for a breakout and an acceleration to the upside on a move over $1525.20.