Gold Price Futures (GC) Technical Analysis – Major Pivot at $1489.10 Controlling Price Action

Based on the early price action and the current price at $1489.10, the direction of the December Comex gold futures contract the rest of the session on Tuesday is likely to be determined by trader reaction to the main 50% level at $1489.10.
James Hyerczyk
Comex Gold

Gold is trading a little higher shortly before the regular session opening. The market is being underpinned by worries ahead of a crucial vote by the U.K. parliament on the Brexit agreement at 18:00 GMT. However, gains are being capped by positive comments over the progress being made in the trade talks between the United States and China.

At 11:46 GMT, December Comex gold is trading $1489.10, up $1.00 or +0.07%.

Daily December Comex Gold

Daily Technical Analysis

The main trend is down according to the daily swing chart. The main trend will change to up on a trade through $1522.30. A move through $1478.00 will signal a resumption of the downtrend. A trade though $1465.00 will reaffirm the downtrend.

The market has also been trading inside the October 11 range of $1508.00 to $1478.00 for the past seven sessions. This price action suggests investor indecision and impending volatility.

The market is currently testing a major retracement zone at $1489.10 to $1471.00.

On the upside, potential resistance is a serious of 50% levels at $1495.40, $1504.20 and $1515.60.

Daily Technical Forecast

Based on the early price action and the current price at $1489.10, the direction of the December Comex gold futures contract the rest of the session on Tuesday is likely to be determined by trader reaction to the main 50% level at $1489.10.

Bearish Scenario

A sustained move under $1489.10 will indicate the presence of sellers. If this creates enough downside momentum then look for the selling to possible extend into the uptrending Gann angle at $1480.00, followed closely by the low at $1478.00.

If $1478.00 fails as support then look for a break into the next uptrending Gann angle at $1472.50, followed by the main Fibonacci level at $1471.00. A trade through the main bottom at $1465.00 could trigger an acceleration to the downside.

Bullish Scenario

A sustained move over $1489.10 will signal the presence of buyers. This could trigger a labored really with potential resistance levels coming in at $1495.00, $1495.40, $1498.20, $1503.30 and $1504.20.

The 50% level at $1504.20 is a potential trigger point for an acceleration to the upside with the next target a 50% level at $1515.60.

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.