Gold Price Futures (GC) Technical Analysis – Resting Inside Short-Term Retracement Zone at $1777.50 – $1795.00

Gold futures are edging lower for a second session on Thursday on relatively light volume as traders react to a rise in U.S. Treasury yields and a firm U.S. Dollar. Despite early strength, the price action this week suggests investor indecision and impending volatility with most of the major players on the sidelines ahead of a key speech from Fed Chair Jerome Powell on Friday.

At 10:25 GMT, December Comex gold is trading $1788.00, down $3.00 or -0.17%.

In economic news, traders will get the opportunity to react to weekly U.S. jobless claims and second quarter GDP estimates at 12:30 GMT. After the initial reaction, the market is expected to become rangebound with investors moving to the sidelines ahead of Powell’s speech.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through $1812.20 will signal a resumption of the uptrend. A move through $1774.60 will change the main trend to down.

On the upside, the nearest resistance is a pair of 50% levels at $1795.00 and $1800.00.

On the downside, the nearest support is a retracement zone at $1777.50 to $1758.50.

Daily Swing Chart Technical Forecast

The direction of the December Comex gold market on Thursday is likely to be determined by trader reaction to $1795.00.

Bearish Scenario

A sustained move under $1795.00 will indicate the presence of sellers. If this creates enough downside momentum then look for the selling to possibly extend into the support cluster at $1777.50 to $1774.60.

Taking out $1774.60 will change the main trend to down and it could trigger an acceleration into the 50% level at $1758.50.

Bullish Scenario

A sustained move over $1795.00 will signal the presence of buyers. The first target is $1800.00. Overtaking this level could trigger an acceleration into the minor top at $1812.20. Taking out this level could extend the rally into the Fibonacci level at $1828.80. This is the last potential resistance before a pair of main tops at $1837.50 and $1839.00.