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James Hyerczyk
Comex Gold

Gold futures inched a little higher on Thursday after U.S. President Donald Trump reignited hopes of a coronavirus stimulus package before the November 3 elections, but a strong dollar kept the metal’s gains in check. Despite the small gain, the market is still in a position to close lower for the week.

On Thursday, December Comex gold settled at $1908.90, up $1.60 or +0.08%. The market is trading down 0.90% for the week.

Trump said he would agree to go higher than the $1.8 trillion that the White House has offered in coronavirus stimulus to strike a deal. Further supporting gold, U.S. weekly jobless claims unexpectedly rose last week.

Daily December Comex Gold

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The main trend will change to down on a move through $1877.10. A move through $1939.40 will reaffirm the uptrend.

The minor range is $1939.40 to $1885.00. Its 50% level or pivot at $1912.20 is controlling the direction of the market this week.

On the downside, the major support is the longer-term retracement zone at $1889.70 to $1842.60. On Wednesday, this area stopped the selling at $1885.00.

On the upside, the primary target is the retracement zone at $1970.10 to $1998.20.


Short-Term Outlook

Based on the price action the last three days, the direction of the December Comex gold market on Friday is likely to be determined by trader reaction to the pivot at $1912.20.

Bearish Scenario

A sustained move under $1912.20 will indicate the presence of sellers. If this move creates enough downside momentum, then look for the selling to possibly extend into the main 50% level at $1889.70, followed closely by $1885.00 and the main bottom at $1877.10. The latter is a potential trigger point for an acceleration into a potential support cluster at $1851.00 to $1842.60.

Bullish Scenario

A sustained move over $1912.20 will signal the presence of buyers. If this generates enough upside momentum then look for buyers to take a shot at $1939.40. This is a potential trigger point for an acceleration to the upside with $1970.10 the primary upside target.

For a look at all of today’s economic events, check out our economic calendar.

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