FXEMPIRE
All
Ad
Corona Virus
Stay Safe, FollowGuidance
World
43,346,888Confirmed
1,159,097Deaths
31,905,975Recovered
Fetching Location Data…
Advertisement
Advertisement
James Hyerczyk
Comex Gold

Gold futures finished lower on Friday after failing to follow-through to the upside following Thursday’s potentially bullish closing price reversal bottom. The catalyst behind today’s decline was a stronger U.S. Dollar. Bullion also posted its steepest weekly contraction since March.

On Friday, December Comex gold settled at $1866.30, down $10.60 or -0.56%

Gold posted a closing price reversal bottom on Thursday after the dollar index rally into a two-month high lost steam as it approached a key resistance area. Nonetheless, the dollar remained on course for its biggest weekly gains since early April.

The news that the Democrats were working on a $2.4 trillion stimulus package, after U.S. Fed officials urged for more fiscal stimulus, offered some respite to investors’ hopes, but skeptical gold buyers failed to bite on the story.

Daily December Comex Gold

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart, however, momentum may be getting ready to shift to the upside with the formation of the closing price reversal bottom on Thursday.

A trade through $1851.00 will negate the closing price reversal top and signal a resumption of the downtrend.

A move through yesterday’s high at $1880.90 will confirm the closing price reversal bottom. The move won’t change the main trend to up, but it could trigger the start of a 2 to 3 day counter-trend rally.

The main range is $1690.10 to $2089.20. Its retracement zone at $1889.70 to $1842.60 is currently being tested. Trader reaction to this zone will determine the near-term direction of the market.

The minor range is $1983.80 to $1851.00. Its 50% level at $1917.40 is the first potential upside target.

Advertisement

Daily Swing Chart Technical Forecast

Based on Thursday and Friday’s price action, the near-term direction of the December Comex gold futures contract is likely to be determined by trader reaction to $1851.10 and $1880.90.

Bearish Scenario

A sustained move under $1851.10 will negate the closing price reversal bottom and signal a resumption of the downtrend. This should lead to a test of the Fibonacci level at $1842.60. This is a potential trigger point for an acceleration into a main bottom at $1819.30.

Bullish Scenario

Taking out $1880.90 will confirm the closing price reversal top. This could lead to a quick test of the main 50% level at $1889.70. This is a potential trigger point for an acceleration to the upside with $1917.40 the next potential upside target.

For a look at all of today’s economic events, check out our economic calendar.
Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
IMPORTANT DISCLAIMERS
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.
RISK DISCLAIMER
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.
FOLLOW US