FXEMPIRE
All
Ad
Advertisement
Advertisement
James Hyerczyk
Add to Bookmarks
Gold

Gold futures are trading higher late in the session on Friday after posting a choppy, two-sided trade earlier in the session. The market is in a position to post about a 5% gain for the week, its best performance since March 27.

The cash market pierced the $1900 per ounce barrier for the first time since 2011 as worsening relations added to fears over the hit to a global economy already reeling from the coronavirus pandemic. The news didn’t drive up gold per se, but it did push interest rates down all week, which made gold a more attractive asset.

Advertisement
Know where Gold is headed? Take advantage now with 

Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

At 19:00 GMT, December Comex gold is trading $1927.40, up $10.00 or +0.52%.

Increasing tensions between the U.S. and China overnight actually drove investors into the U.S. Dollar, pressuring gold prices. However, gold rebounded to move higher for the session after U.S. manufacturing and services PMI reports missed their forecasts. This raised concerns over the strength of the economy, driving down the U.S. Dollar, and raising demand for dollar-denominated gold.

Daily December Comex Gold

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was confirmed when buyers took out yesterday’s high.

A trade through $1819.30 will change the main trend to down. This is not likely over the near-term but traders should start watching for a closing price reversal top.

The new short-term range is $1819.30 to $1933.60. Its retracement zone at $1876.50 to $1863.00 is a potential support area. Since the main trend is up, buyers are likely to come in on a test of this area.

Advertisement

Short-Term Outlook

Although gold futures rallied to a new contract high on Friday, there was one red flag. The gain from the previous high to today’s high was only $6.50, despite the U.S. Dollar Index dropping to a 2-year low.

This suggests the buying may be weakening, but it doesn’t mean the trend is changing.

Additionally, swing chart analysis shows that recent corrections have been about $38.00.

If the market is topping out, then it could correct back to $1895.60, or 1876.50 to $1863.00. Since the main trend is up, buyers are likely to step in following a test of these levels.

For a look at all of today’s economic events, check out our economic calendar.

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