Gold Price Futures (GC) Technical Analysis – Rangebound Ahead of Fed Decisions

Gold futures are trading flat on Tuesday as traders position themselves ahead of the Fed’s interest rate and monetary policy decisions on Wednesday. Traders have priced in a 25-basis point rate cut by the central bank, however, the focus by traders will be on how policymakers feel about additional rate cuts in October or December.

At 12:15 GMT, December Comex gold is trading $1511.40, down $0.01 or -0.01%.

A weaker U.S. Dollar, falling Treasury yields and a dip in demand for risky assets is also contributing to the intraday rebound rally in gold. Volume is below average as many of the major players have taken to the sidelines. However, this may make the market vulnerable to wild price swings.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through $1492.10 will signal a resumption of the downtrend. The main trend will change up on a move through $1566.20.

The minor trend is also down. A trade through $1519.70 will change the minor trend to up. This will also shift momentum to the upside.

The main range is $1412.10 to $1566.20. Its retracement zone at $1480.10 to $1471.00 is support.

The short-term range is $1566.20 to $1492.10. Its retracement zone at $1529.20 to $1537.90 is resistance. This zone stopped the rally at $1532.20 on Friday.

Daily Technical Forecast

Based on the early price action and the current price at $1511.40, the direction of the December Comex gold futures contract on Tuesday is likely to be determined by trader reaction to the uptrending Gann angle at $1504.40.

Bullish Scenario

A sustained move over $1504.40 will indicate the presence of buyers. If this move can create enough upside momentum then look for the rally to possibly extend into the resistance cluster at $1529.20 to $1530.20.

Bearish Scenario

A sustained move under $1504.40 will signal the presence of sellers. If this attracts enough sellers then look for a potential move into the pair of minor bottoms at $1493.10 and $1492.10, followed by the main 50% level at $1480.10.