Gold Price Futures (GC) Technical Analysis – Rangebound; Breakout Trigger Points at $1816.10 and $1786.80

Gold futures are inching higher on Tuesday in a lackluster trade as investors focused on this week’s U.S. Federal Reserve meeting for clues about when central bank policymakers might rein in its easy monetary policies. Gold is currently hovering just above its recent short-term low after dipping slightly below the psychological $1800 level.

At 18:46 GMT, December Comex gold is trading $1804.20, down $0.80 or -0.04%.

Tuesday marks the start of the Fed’s two-day monetary policy meeting. On Wednesday at 18:00 GMT, the Fed will release is policy statement, followed by a news conference by Fed Chairman Jerome Powell.

Investors are curious as to how the Fed responds to fast-rising prices while facing increasing threats posed by the more contagious Delta variant of the coronavirus. The Fed at its last meeting on June 16 dropped a reference to the coronavirus as a drag on the economy.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through $1839.00 will change the main trend to up. A move through $1793.10 will signal a resumption of the downtrend.

The minor trend is also down. A trade through $1814.50 will change the minor trend to up. This will shift momentum to the upside.

The minor range is $1793.10 to $1814.50. Its 50% level or pivot is $1803.80.

The short-term range is $1839.00 to $1793.10. Its 50% level at $1816.10 is potential resistance.

On the upside, the key resistance is a retracement zone at $1839.90 to $1859.70.

On the downside, the support is a long-term 50% level at $1795.00 and a Fibonacci level at $1786.80.

Daily Swing Chart Technical Forecast

The direction of the December Comex gold market into the close on Tuesday will be determined by trader reaction to $1803.80.

Bearish Scenario

A sustained move under $1803.80 will indicate the presence of sellers. The next downside targets are a series of levels at $1795.00, $793.10 and $1786.80. The latter is a potential trigger point for an acceleration to the downside with $1754.50 the next potential target.

Bullish Scenario

A sustained move over $1803.80 will signal the presence of buyers. The first upside targets are $1814.50 and $1816.10. The latter is a potential trigger point for an acceleration into the resistance cluster at $1839.00 to $1839.90.