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

Gold futures finished higher on Friday after reaching its best level since June 26. The rally was driven by another drop in U.S. Treasury yields, which made the dollar a less-desirable investment. One catalyst behind the move were rising expectations that the U.S. Federal Reserve will pause its tightening cycle sooner than expected, or risk slowing the U.S. economy with further interest rate hikes.

On Friday, February Comex gold settled at $1283.00, up $1.90 or +0.15%.

Daily February Comex Gold

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed on Friday when buyers took out the July 9 main top at $1284.10. The main trend will change to down on a trade through $1236.50. Taking out $1284.70 will signal a resumption of the uptrend.

A change is trend is highly unlikely, but due to the prolonged move up in terms of price and time, the market is in the window of time for a potentially bearish closing price reversal top. Friday was the ninth session up from the last main bottom on December 14.

On the upside, the major long-term retracement zone at $1285.70 to $1312.30 is the primary upside target. If there is a closing price reversal top, it is likely to begin inside this zone.

The new short-term range is $1236.50 to $1284.70. Its 50% level or pivot at $1260.60 is the first downside target.

The intermediate range is $1216.80 to $1284.70. Its 50% level at $1250.80 is the next target level.

The main range is $1202.40 to $1284.70. Its retracement zone at $1243.60 to $1233.80 is the primary downside target.


Daily Swing Chart Technical Forecast

Based on Friday’s price action and close at $1283.00, the direction of the February Comex gold futures contract on Monday is likely to be determined by trader reaction to Friday’s high at $1284.70.

Bullish Scenario

A sustained move over $1284.70 will indicate the presence of buyers. If this can generate enough upside momentum, we could see an acceleration to the upside through the 50% level at $1285.70. The daily chart indicates there is plenty of room to the upside to rally.

Bearish Scenario

A sustained move under $1284.70 will signal the presence of sellers. This could signal the start of a short-term correction with the 50% level at $1260.60 the near-term target.

Closing Price Reversal Scenario

Taking out $1284.70 then turning lower for the session will indicate the selling is greater than the buying at current price levels. A lower close will form a closing price reversal top. If confirmed on Wednesday, this could trigger the start of a 2 to 3 day counter-trend break.

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.