Gold Price Futures (GC) Technical Analysis – In Position to Challenge Major Weekly Resistance Zone at $1285.70 to $1312.30

Based on last week’s price action and the close at $1283.00, the direction of the February Comex gold futures contract this week is likely to be determined by trader reaction to the 50% level at $1285.70.
James Hyerczyk
Comex Gold
Comex Gold

Bullish investors had a great week as gold futures continued to climb because of the shift in investor sentiment toward the U.S. Dollar. Driving the dollar lower is the softer tone from the U.S. Federal Reserve. Since the release of the Fed’s December monetary policy statement, gold traders have been pricing in the strong possibility the Fed may take a pause in its aggressive mission to raise rates in 2019.

Last week, February Comex gold futures settled at $1283.00, up $24.90 or +1.98%.’

Weekly February Comex Gold

Weekly Swing Chart Technical Analysis

The main trend is up according to the weekly swing chart. The uptrend resumed last week when buyers took out the previous week’s high at $1270.30.

The daily chart indicates there is plenty of room to the upside with the next main top on the weekly chart coming in at $1393.70. The main trend will change to down on the weekly chart on a move through $1202.40.

The main range is $1398.20 to $1173.20. Its retracement zone at $1285.70 to $1312.30 is the primary upside target. Last week’s high at $1284.70 fell just short of the lower or 50% level at $1285.70.

Weekly Swing Chart Technical Forecast

Based on last week’s price action and the close at $1283.00, the direction of the February Comex gold futures contract this week is likely to be determined by trader reaction to the 50% level at $1285.70.

Bullish Scenario

Taking out and sustaining a rally over $1285.70 will indicate the presence of buyers. If this move generates enough upside momentum then look for an eventual test of the Fibonacci level at $1312.30. This move is likely to be underpinned by lower Treasury yields and a weaker U.S. Dollar.

Bearish Scenario

The inability to overcome or sustain a rally over $1285.70 will signal the return of sellers. Additionally, this week is the seventh week from the last main bottom which puts gold inside the window of time for a potentially bearish closing price reversal top.

If a reversal top is formed and confirmed next week, we could see the start of a 2 to 3 week correction with the next target about $1243.50.

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.