Gold Price Futures (GC) Technical Analysis – Strengthens Over $1800.00, Weakens Under $1795.00
Gold futures are pressing their high late in the session on Monday as a weaker U.S. Dollar made the dollar-denominated asset more attractive to investors. Additionally, some investors were increasing bets that the surge in U.S. coronavirus cases would encourage the U.S. Federal Reserve to delay tapering of economic support. A dip in U.S. Treasury yields also helped boost demand for non-yielding gold.
At 20:41 GMT, December Comex gold is trading $1807.40, up $23.40 or +1.31%.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. A trade through $1797.60 changed the main trend to up. A move through the new main bottom at $1774.60 will change the main trend to down.
The main range is $1922.00 to $1677.90. Gold is currently testing its retracement zone at $1800.00 to $1828.80.
On the downside, the long-term 50% level at $1795.00 is new support. The short-term support is $1777.50 to $1758.50.
Daily Swing Chart Technical Forecast
Based on Monday’s price action, the direction of the December Comex gold market early Tuesday is likely to be determined by trader reaction to $1800.00.
A sustained move over $1800.00 will indicate the presence of buyers. If this move is able to generate enough upside momentum then look for the rally to possibly extend into the Fibonacci level at $1828.80, followed by a pair of main tops at $1837.50 and $1839.00. The latter is a potential trigger point for an acceleration to the upside.
A sustained move under $1800.00 will signal the presence of sellers. This could lead to a quick test of $1795.00.
Taking out $1795.00 will indicate the selling pressure is getting stronger. This could trigger a further break into $1777.50, followed by the main bottom at $1774.60.
The trend will change to down on a move through $1774.60. This could trigger a further decline into $1758.50.