Gold Price Futures (GC) Technical Analysis – Short-Term Bullish Over $1222.70, Short-Term Bearish Under $1221.30

December Comex Gold futures fell on Friday after a sharp break in the Euro helped shift momentum in the U.S. Dollar back to the upside. This hurt foreign demand for dollar-denominated gold. The catalyst behind the selling in the Euro was a series of weaker than expected Euro Zone PMI reports. The data showed Euro Zone business growth was much weaker than expected in November as exports fell sharply, hurt by a slowing global economy and a lingering trade dispute led by the United States.

On Friday, December Comex Gold settled at $1223.20, down $4.80 or -0.39%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through $1246.00 will signal a resumption of the uptrend. A move through $1196.60 will change the main trend to down.

The minor trend is also up. A trade through $1220.10 will change the minor trend to down. This will also shift momentum to the downside.

Taking out the high at $1230.90 and the minor top at $1239.30 will only indicate the buying is getting stronger. It will have no impact on the trend.

Daily Swing Chart Retracement Levels

The price action is also being influenced by a series of retracement levels.

On the upside, potential resistance levels are layered at $1227.10, $1235.80 and $1246.30.

On the downside, potential support levels are a price cluster at $1222.70 to $1221.30.

The short-term range is $1196.60 to $1230.90. Its retracement zone at $1213.70 to $1209.70 is another potential support area.

The main support area is $1206.60 to $1197.20. This resistance zone stopped the selling at $1196.60 on November 13.

Daily Swing Chart Technical Forecast

Based on last week’s price action and Friday’s close at $1223.20, the direction of the December Comex Gold market on Monday is likely to be determined by trader reaction to a pair of 50% levels at $1222.70 to $1221.30.

Bullish Scenario

A sustained move over $1222.70 will indicate the presence of buyers. If this move can create enough upside momentum then look for a rally into $1227.10.

Overtaking $1227.10 will indicate the buying is getting stronger. This could trigger a rally into last week’s high at $1230.90. This is another trigger point for a potential acceleration into $1235.80.

Bearish Scenario

The inability to hold above $1222.70 will be the first sign of weakness. However, a sustained move under $1221.30 will signal the presence of sellers. Taking out $1220.10 will change the minor trend to down. This could trigger an acceleration to the downside with the primary target zone $1213.70 to $1209.70.