Gold Price Futures (GC) Technical Analysis – Remains Trapped Between Pair of Retracement Zones

Gold futures closed higher on Monday while posting an inside move. The price action suggests investor indecision and impending volatility. The catalysts behind the movement were a two-sided trade in the U.S. Dollar and position-squaring ahead of the Fed’s widely expected interest rate hike on Wednesday. Volume was light and liquidity thin due to bank holidays in Japan and China.

December Comex Gold futures settled at $1204.40, up $3.10 or +0.26%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through $1215.80 will change the main trend to up, but additional main tops come in at $1218.00 and $1220.70.

A trade through $1196.00 will signal a resumption of the downtrend. This is followed closely by main bottoms at $1192.70 and $1189.50.

Since mid-week, the market has been trapped by a pair of retracement zones at $1205.90 to $1215.10 and $1193.90 to $1187.50.

Continue to look for a sideways trade as long as gold remains inside these retracement zones.

Daily Swing Chart Technical Forecast

Based on Monday’s price action and the close at $1204.40, the direction of the December Comex Gold market today is likely to be determined by trader reaction to the 50% level at $1205.90.

A sustained move under $1205.90 will indicate the presence of sellers. If this move creates enough downside momentum then look for the selling to extend into $1193.90 to $1187.50.

The trigger point for a potential acceleration to the downside is $1187.50. The chart is wide open under this level with $1167.10 the next likely target.

A sustained move over $1205.90 will signal the presence of buyers. If this move can generate enough upside momentum then look for a drive into $1215.10 to $1222.70.

The trigger point for an acceleration to the upside is $1222.70. The daily chart shows is that if this price is taken out, the market could surge into $1235.80.