Gold Price Futures (GC) Technical Analysis – Strengthens Over $1522.60, Weakens Under $1520.40 into Close

Based on the early price action and the current price at $1528.70, the direction of the December Comex gold futures contract into the close is likely to be determined by trader reaction to a pair of uptrending Gann angles at $1522.60 and $1520.40.
James Hyerczyk
Comex Gold

Stock market volatility and fears of a global recession are helping to hold gold prices steady to higher into the close on Wednesday. However, the market is trading inside Tuesday’s wide range, which suggests some investor indecision.

The catalyst behind the price action is weaker than expected economic data from China and the Euro Zone. Chinese industrial production and retail sales came in lower than expected, while German GDP softened as the Euro Zone economy continued to feel the impact of the prolonged trade war between the United States and China.

At 19:23 GMT, December Comex gold futures are trading $1528.70, up $14.60 or +0.97%.

Daily December Comex Gold

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, momentum may be getting ready to shift to the downside after the formation of the closing price reversal top at $1546.10 on August 13.

A trade through $1546.10 will negate the closing price reversal top and signal a resumption of the uptrend. A move through $1488.90 will confirm the closing price reversal top. This could trigger the start of a 2 to 3 day correction.

The minor range is $1546.10 to $1488.90. Its 50% level or pivot at $1517.50 is controlling the direction of the index.

The short-term range is $1412.10 to $1546.10. If the closing price reversal top is confirmed then its retracement zone at $1479.10 to $1463.30 will become the primary downside target. Since the main trend is up, buyers could come in on a test of this zone since it represents value.

Daily Technical Forecast

Based on the early price action and the current price at $1528.70, the direction of the December Comex gold futures contract into the close is likely to be determined by trader reaction to a pair of uptrending Gann angles at $1522.60 and $1520.40.

Bullish Scenario

A sustained move over $1522.60 will indicate the presence of buyers into the close. If this move generates enough upside momentum then look for a possible rally into $1546.10. Taking out this level will indicate the buying is getting stronger. Crossing to the strong side of a steep uptrending angle at $1556.10 will put gold in a bullish position.

Bearish Scenario

A sustained move under $1522.60 will signal the presence of sellers into the close. The first downside target is the pivot at $1517.50. This is a potential trigger point for an acceleration to the downside with the next targets yesterday’s low at $1488.90 and the uptrending Gann angle at $1484.10. This is the last support angle before the short-term retracement zone at $1479.10 to $1463.30.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US