Gold Price Futures (GC) Technical Analysis – Next Upside Target Area $1284.10 to $1285.70

Based on Monday’s price action and the close at $1272.50, the direction of the February Comex gold market on Wednesday is likely to be determined by trader reaction to Monday’s high at $1273.90.
James Hyerczyk
Comex Gold
Comex Gold

Gold prices spiked to the upside on Monday in reaction to a weaker U.S. Dollar and a steep drop in U.S. Treasury yields. A plunge in U.S. equity markets also made gold an attractive safe-haven asset along with the Japanese Yen and the Swiss Franc. The gold market was closed on Tuesday due to the Christmas holiday. Because of this pend of demand due to heightened volatility in the global equity markets could trigger another surge to the upside.

On Monday, February Comex gold futures settled at $1272.50.

Daily February Comex Gold

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed on Monday when buyers took out last week’s high at $1270.30.

The main trend will change to down on a trade through $1236.50.

Today is the seventh day up from the last main bottom so the market begins the session inside the window of time for a closing price reversal top.

The minor trend is also up. A trade through $1245.30 will change the minor trend to down. This will shift momentum to the downside.

Daily Retracement Level Technical Analysis

The primary upside target is the contract’s 50% to 61.8% retracement zone at $1285.70 to $1312.30.

The short-term range is $1236.50 to $1273.90. Its 50% level or pivot at $1255.20 is the first downside target.

The intermediate range is $1216.80 to $1273.90. Its 50% level or pivot at $1245.40 is the second downside target.

The main support zone is $1238.20 to $1229.70.

Daily February Comex Gold (Short-Term)

Daily Swing Chart Technical Forecast

Based on Monday’s price action and the close at $1272.50, the direction of the February Comex gold market on Wednesday is likely to be determined by trader reaction to Monday’s high at $1273.90.

Bullish Scenario

Taking out $1273.90 and sustaining the rally will indicate the buying is getting stronger. If this move generates enough upside momentum then look for the rally to extend into the July 9 main top at $1284.10, followed closely by the contract 50% level at $1285.70.

We could see sellers on the first test of $1284.10 to $1285.70. However, taking out $1285.70 could trigger an acceleration to the upside with the Fibonacci level at $1312.30 the next major upside target.

Bearish Scenario

A sustained move under $1273.90 will signal the presence of sellers. If this creates downside pressure then look for a potential move into the short-term 50% level at $1255.20.

Closing Price Reversal Top

Taking out $1273.90 then turning lower for the session will put the February Comex gold market in a position to form a potentially bearish closing price reversal top.

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.