Gold Price Futures (GC) Technical Analysis – September 6, 2019 Forecast

Gold futures are under pressure shortly before the regular session opening and the release of the U.S. Non-Farm Payrolls report at 12:30 GMT. The selling is being driven by profit-taking and position-squaring in response to a stronger U.S. Dollar, firmer Treasury yields and increasing demand for higher risk assets. The catalyst behind the price action is follow-through selling related to yesterday’s upbeat ADP private sector jobs report and services industry data. The market is now in a position to post its second consecutive weekly loss.

At 11:20 GMT, December Comex gold is trading $1514.60, down $11.10 or -0.73%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. The trend turned down on Thursday when sellers took out the $1525.60 main bottom. A move through $1566.20 will change the main trend to up.

The minor trend is also down. Taking out the last minor bottom at $1488.90 will reaffirm the minor trend, setting up the market for a potential test of the next main bottom at $1412.10.

The minor range is $1488.90 to $1566.20. Its 50% level or pivot at $1527.60 is controlling the short-term direction of the market.

The intermediate range is $1412.10 to $1566.20. Its retracement zone at $1489.20 to $1471.00 is the first downside target.

The main range is $1396.40 to $1566.20. Its 50% to 61.8% retracement zone at $1481.30 to $1461.30 is another downside target.

Daily Swing Chart Technical Forecast

Based on the early price action and the current price at $1514.60, the direction of the December Comex gold futures contract on Friday is likely to be determined by trader reaction to the pivot at $1527.60.

Bearish Scenario

A sustained move under $1527.60 will indicate the presence of sellers. This could trigger an acceleration to the downside with potential targets the minor bottom at $1488.90, followed by a series of retracement levels at $1489.20, $1481.30, $1471.00 and $1461.30. Don’t be surprised if there are technical bounces on each test of these levels.

Bullish Scenario

Overcoming and sustaining a rally over $1527.60 will signal the presence of buyers. This could trigger a short-covering rally into $1538.60, followed by $1566.20.