Gold Price Futures (GC) Technical Analysis – Near-Term Bullish as Long as $1795.00 Holds as Support

Gold futures are trading higher in a choppy trade on Thursday with the precious metal drawing some support from a stronger Euro, which is driving the U.S. Dollar Index lower.

The single currency is moving higher because today’s dovish decision by the European Central Bank (ECB) to keep policy unchanged despite rising inflation, had been widely expected for weeks.

Gold is also being supported by a dovish Bank of Japan, which also retained its easy monetary policy settings.

Slightly higher U.S. Treasury yields may be helping to put a cap on gold prices.

At 14:01 GMT, December gold futures are trading $1805.10, up $6.30 or +0.35%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through $1815.50 will signal a resumption of the uptrend. A move through $1760.30 will change the main trend to down.

The minor trend is also up. A trade through $1783.00 will change the minor trend to down. This will shift momentum to the downside.

Gold is also trading on the strong side of a short-term 50% level at $1800.00 and a long-term 50% level at $1795.00. Both are key support.

Additional support levels come in at $1787.90, $1780.50, $1768.30 and $1757.40.

On the upside, the nearest resistance is a short-term Fibonacci level at $1828.80.

Daily Swing Chart Technical Forecast

The direction of the December Comex gold market on Thursday is likely to be determined by trader reaction to the $1800.00 and $1795.00.

Bullish Scenario

A sustained move over $1800.00 will indicate the presence of buyers. If this move generates enough upside momentum then look for the rally to extend into $1815.50. Taking out this level could fuel a further rally into $1828.80.

Bearish Scenario

A sustained move under $1795.00 will signal the presence of sellers. This could lead to a labored break with targets lined up at $1787.90, $1783.00 and $1780.50.

If $1780.50 fails as support then look for the selling to possibly extend into $1768.30, $1760.30 and $1757.40.