Corona Virus
Stay Safe, FollowGuidance
Fetching Location Data…
James Hyerczyk
Comex Gold

Gold futures weakened on Monday as the week-long liquidation continued. The move is being fueled by increasing appetite for risk and rising U.S. Treasury yields. The spot market even broke the psychological $1500 level, which probably triggered a series of sell stops.

According to the U.S. Commodity Futures Trading Commission (CFTC), speculators increased their bullish positions in COMEX gold and silver contracts in the week to September 3. However, on September 5, China announced the resumption of trade talks with United States, set for early October. This was a bearish development. It was also a surprise, which means those new speculative longs were likely caught in a bull trap and they will have to liquidate or face some serious pain.

Know where Gold is headed? Take advantage now with 

75% of retail CFD investors lose money

The daily chart clearly indicates that sentiment has shifted from buying strength or chasing the market higher, to looking for value in a support area. If you’re bullish then this is where you should be looking for your next position. There is no urgency to get long so let the market come to you. It’s the guys that bought near the top that are panicking.

On Monday, December Comex gold settled at $1511.10, down $4.40 or 0.29%.

Daily December Comex Gold

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. The trend turned down on September 5 when sellers took out the previous main bottom at $1525.60. The new main top is $1566.20.

The minor trend is also down. The next minor bottom target comes in at $1488.90.

The minor range is $1488.90 to $1566.20. Its 50% level or pivot at $1527.60 is new resistance.

The short term range is $1412.10 to $1566.20. Its retracement zone at $1489.20 to $1471.00 is the first support zone.

The intermediate range is $1396.40 to $1566.20. Its retracement zone at $1481.30 to $1461.30 is the second support zone.

Somewhere between $1489.20 and $1461.30 is short-term value. This is where smart buyers are likely to start coming in.


Daily Swing Chart Technical Forecast

Based on Monday’s close at $1511.10, the direction of the December Comex gold market on Tuesday is likely to be determined by trader reaction to the minor pivot at $1527.60.

Bearish Scenario

A sustained move under $1527.60 will indicate the presence of sellers. If they continue to increase their downside pressure then look for a near-term drive into the series of retracement levels at $1489.20, $1481.30, $1471.00 and $1461.30.

Bullish Scenario

A sustained move over $1527.60 will signal the return of buyers. This move could trigger a short-covering rally into at least $1530.30. Since the trend is down, sellers are likely to come in on a test of this level. They will be trying to form a potentially bearish secondary lower top.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.