Gold Price Futures (GC) Technical Analysis – In Position to Challenge Main Top at $1532.40

The main trend is up according to the daily swing chart. Based on the current price at $1516.40, the nearest support is a pair of uptrending Gann angles at $1502.50 and $1500.40.
James Hyerczyk
Comex Gold

Gold futures continue to push higher into the close on Wednesday with the rally being driven primarily by a plunge in global bond yields. That move was fueled by a surprise 50-basis point rate cut by the Reserve Bank of New Zealand earlier in the day.

Remember that gold doesn’t pay any interest to hold it, therefore, it’s a more value asset than bonds that pay negative interest. According to CNBC, there is $15 trillion worth of bonds with negative rates. At this time, investors would rather get paid nothing to hold gold than pay to lend money to a government. Makes sense to me.

At 18:56 GMT, December Comex gold is trading $1516.40, up $32.40 or +2.18%.

Daily December Comex Gold

Daily Technical Analysis

The main trend is up according to the daily swing chart. The next target is the March 14, 2014 main top at $1532.40. The main trend will change to down on a trade through $1412.10. This is highly unlikely, but due to the steep rally, it is vulnerable to a closing price reversal time. Profit-taking will likely be behind that formation.

Based on the current price at $1516.40, the nearest support is a pair of uptrending Gann angles at $1502.50 and $1500.40. Crossing to the strong side of these angles, moving up at a rate of $4.00 per day, helped trigger an acceleration to the upside earlier in the session.

If $1500.40 fails as support then look for a pullback into the next support, a steep uptrending Gann angle moving up at a rate of $16.00 per day. This angle is at $1476.10.

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

Latest Articles

See All

Expand Your Knowledge

See All
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.