Gold Price Futures (GC) Technical Analysis – Late Break Through $1461.30 Could Trigger Acceleration to DownsideBased on the early price action and the current price at $1463.10, the direction of the December Comex gold market into the close on Friday is likely to be determined by trader reaction to the main Fibonacci level at $1461.30.
Gold futures are trading slightly lower late in the session on Friday. Rising U.S. Treasury yields helped push up the U.S. Dollar, driving down demand for dollar-denominated gold. The catalyst behind the jump in yields was a pair of industry reports that showed better-than-expected improvement in the U.S. factory and services sectors.
At 18:47 GMT, December Comex gold is trading $1463.10, down $0.50 or -0.04%.
IHS Markit said its “flash” purchasing managers index (PMI) for manufacturing rose to 52.2 in November from a final reading of 51.3 in October, while its preliminary services PMI increased to 51.6 this month from 50.6 last month.
Also helping to boost the greenback was a drop in the Euro. The single-currency fell after a survey showed Euro Zone business growth almost ground to a halt this month as activity in the bloc’s dominant services industry increased at a much weaker pace than expected and among manufacturers it contracted again.
Daily Technical Analysis
The main trend is down according to the daily swing chart, however, momentum is trending higher. A new main top was formed at $1479.20. A trade through this level will change the main trend to up. A move through $1446.20 will signal a resumption of the downtrend.
The minor trend is up. This is supporting the momentum. A trade through $1456.60 will change the minor trend to down. This will shift momentum to the downside.
The main range is $1396.40 to $1566.20. Its retracement zone at $1481.30 to $1461.30 is controlling the near-term direction of the market. Gold is currently testing the lower level of this zone.
The intermediate retracement zone resistance is $1471.00 to $1489.20. Gold is trading on the weak side of this zone.
Daily Technical Forecast
Based on the early price action and the current price at $1463.10, the direction of the December Comex gold market into the close on Friday is likely to be determined by trader reaction to the main Fibonacci level at $1461.30.
A sustained move under $1461.30 will indicate the selling pressure is getting stronger. This could trigger a late session break into the minor bottom at $1456.60, followed by an uptrending Gann angle at $1448.00 and the main bottom at $1446.20.
Holding above $1461.30 will signal the presence of buyers. Taking out $1471.00 could trigger a late acceleration to the upside with the main top at $1479.20 the next upside target.