Gold Price Futures (GC) Technical Analysis – Strengthens Over $1207.90, Weakens Under $1206.60

A weaker U.S. Dollar is helping to support gold prices early Thursday. The dollar is being pressured by a stronger Euro. The single currency is garnering support from the news that Britain’s Prime Minister, Theresa May won cabinet approval for her draft Brexit plan, although there are still concerns over whether her proposal can clear parliamentary obstacles.

At 0502 GMT, December Comex Gold futures are trading at $1212.30, up $2.20 or +0.17%.

Daily Technical Analysis

The main trend is up according to the daily swing chart, however, momentum is trending lower. A trade through $1184.30 will change the main trend to down. A move through $1246.00 will signal a resumption of the uptrend.

The minor trend is down. The trend changed to down on a move through $1213.40. This is the reason for the shift in momentum to down.

The main range is $1167.10 to $1246.00. Its retracement zone at $1206.60 to $1197.20 is support. This zone stopped the selling at $1196.60.

The intermediate range is $1184.30 to $1246.00. Gold is currently testing its retracement zone at $1215.20 to $1207.90.

The short-term range is $1246.00 to $1196.60. Its retracement zone at $1221.30 to $1227.10 is the primary upside target.

Daily Technical Forecast

Based on yesterday’s close at $1210.10 and the earlier price action, the direction of the December Comex Gold market on Thursday is likely to be determined by trader reaction to a pair of retracement levels at $1207.90 and $1206.60.

Bullish Scenario

A sustained move over $1207.90 will indicate the presence of buyers. If this move generates enough upside momentum then look for the rally to possibly extend into a 50% level at $1215.20, followed by a pair of Gann angles at $1218.00 and $1218.30. Sellers could come in on a test of this area.

Overcoming $1218.30 will likely fuel a surge into the short-term retracement zone at $1221.30 to $1227.10.

Bearish Scenario

A sustained move under $1206.60 will signal the presence of sellers. This could trigger a spike into an uptrending Gann angle at $1201.30. This is followed by the Fib level at $1197.20, followed by the minor bottom at $1196.60.

If $1196.60 fails as support then look for a break into the next uptrending Gann angle at $1192.80. This is the last uptrending support angle before the $1184.30 main bottom.