Gold Price Futures (GC) Technical Analysis – Strengthens Over $1757.40, Weakens Under $1738.60
Gold futures are inching higher shortly after the New York session on Monday despite a rise in Treasury yields and the U.S. Dollar. An overnight reversal to the downside in the U.S. stock indexes may be helping to underpin prices, but more than likely, the market may have found a sweet spot on the chart where it is neither too bullish nor two bearish.
At 16:52 GMT, December Comex gold futures are trading $1752.80, up $1.10 or +0.06%.
Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart. A trade through $1737.50 will signal a resumption of the downtrend. A move through $1788.40 will change the main trend to up.
The short-term range is $1677.90 to $1836.90. Gold is currently trading inside its retracement zone at $1757.40 to $1738.60.
The minor range is $1788.40 to $1737.50. Its 50% level or pivot at $1762.90 is the first upside target.
The strongest resistance are is a series of 50% levels at $1787.20, $1795.00 and $1800.00.
On the downside, the major support is a long-term Fibonacci level at $1716.00.
Daily Swing Chart Technical Forecast
The direction of the December Comex gold futures market into the close on Monday is likely to be determined by trader reaction to $1757.40 and $1738.60. The upside potential seems to be a little more limited than the downside potential.
A sustained move over $1757.40 will indicate the presence of buyers. The first upside target is $1762.90.
Taking out $1762.90 could trigger an acceleration into a resistance cluster at $1787.20 to $1788.40. This is followed by a pair of major 50% levels at $1795.00 to $1800.00.
A sustained move under $1757.40 will be the early sign of weakness. This could trigger a break into $1738.60 to $1737.50.
A failure to hold $1737.50 could trigger an acceleration into the major Fibonacci level at $1716.00.