Gold Price Futures (GC) Technical Analysis – Seven Consecutive Closes Inside $1889.70 – $1842.60 RT ZoneThe direction of the December Comex gold market on Wednesday is likely to be determined by trader reaction to the main 50% level at $1889.70.
Gold futures are drifting sideways to lower for a second session on Wednesday due to optimism over potential COVID-19 and the lack of progress toward a U.S. fiscal stimulus package. Concerns over the economic impact from the resurgence of coronavirus cases in the United States are limiting losses. Furthermore, long-term monetary stimulus from the U.S. Federal Reserve is also underpinning the market.
At 07:20 GMT, December Comex gold is trading $1880.20, down $4.90 or -0.26%.
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In other news, Fed Chair Jerome Powell said on Tuesday there is a “long way to go” for the economy to recover and that the central bank is committed to using all its tools to support the recovery for as long as required.
Traders are attempting to hold gold in a range as they wait for a catalyst to drive the next major move.
Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart. A trade through $1848.00 will signal a resumption of the downtrend. The main trend will change to up on a move through $1966.10.
The main range is $1690.10 to $2089.20. The market has closed inside its retracement zone at $1889.70 to $1842.60 for seven straight sessions.
The minor range is $1966.10 to $1848.00. Its retracement zone at $1907.10 is potential resistance.
Daily Swing Chart Technical Forecast
The direction of the December Comex gold market on Wednesday is likely to be determined by trader reaction to the main 50% level at $1889.70.
A sustained move over $1889.70 will indicate the presence of buyers. This could trigger a quick surge into the minor pivot at $1907.10. This is a potential trigger point for an acceleration to the upside with the next major target $1966.10 to $1970.10.
A sustained move under $1889.70 will signal the presence of sellers. This could create the downside momentum needed to challenge the potential support cluster at $1848.00 to $1842.60. The latter is a potential trigger point for an acceleration into the July 14 main bottom at $1819.30.