Gold Price Futures (GC) Technical Analysis – JOLTS, Factory PMI Sets the Tone Ahead of Fed Decisions

Gold futures are up nearly 1% on Tuesday as U.S. Treasury yields and the U.S. Dollar retreated on expectations that the Federal Reserve will mitigate its aggressive-tightening path starting next month.

At 11:15 GMT, December Comex gold futures are trading $1655.60, up $14.90 or +0.91%. On Monday, the SPDR Gold Shares ETF (GLD) settled at $151.93, down $1.23 or -0.80%.

A dip in Treasury yields is weighing on the U.S. Dollar index, making bullion less expensive for overseas buyers, with lower benchmark 10-year Treasury yields also lending support to bullion.

Gold investors are widely expecting the fourth consecutive 75 basis point interest rate hike from the Federal Reserve and are hoping to gain some clarity about whether the central bank will slow the pace of rate hikes as the year ends.

JOLTs, ISM Manufacturing PMI Reports on Tap

In economic news, gold traders are awaiting the release of the JOLTs job openings report for September and ISM’s October manufacturing PMI at 14:00 GMT.

The large gap between job openings and available workers was one of the key drivers of inflation in the U.S. August’s job openings figures suggested the gap may be narrowing and investors will be watching closely to see if this trend continued, according to CNBC.

Meanwhile, the ISM Manufacturing PMI will show whether factory activity has increased or decreased throughout October. September’s figures suggested the sector was close to contracting and reflected the slowest growth levels since 2020, CNBC wrote.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through $1679.40 will change the main trend to up. A move through $1621.10 will signal a resumption of the downtrend.

The minor range is $1621.10 to $1679.40. The market is currently straddling its pivot at $1650.30.

The short-term range is $1738.70 to $1621.10. Its retracement zone at $1679.90 to $1693.80 is the nearest target zone.

On the downside, the major support is a long-term Fibonacci level at $1609.30.

Daily Swing Chart Technical Forecast

Trader reaction to the minor pivot at $1650.30 is likely to determine the direction of the December Comex gold futures contract on Tuesday.

Bullish Scenario

A sustained move over $1650.30 will indicate the presence of buyers. If this move is able to generate enough upside momentum then look for a surge into $1656.50, followed by the resistance cluster at $1679.40 – $1679.90.

Bearish Scenario

A sustained move under $1650.30 will signal the presence of sellers. This could trigger a quick break into the minor bottom at $1633.60.

Taking out $1633.60 will indicate the selling is getting stronger with the next targets a pair of main bottoms at $1618.00 and $1621.10, and the major Fibonacci level at $1609.30.