Gold Price Futures (GC) Technical Analysis – Strengthens Over $1810.60, Weakens Under $1780.60

Gold futures are trading lower late Wednesday after failing to follow-through to the upside following Tuesday’s minor reversal bottom. Helping to put a lid on the market were firm Treasury yields, while a weaker U.S. Dollar may have underpinned prices. Although the market is trading lower, most of the session featured rangebound price action as investors sought clarity on the U.S. Federal Reserve’s tapering strategy.

At 20:53 GMT, December Comex gold futures are trading $1795.20, down $11.90 or -0.66%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. However, momentum is trending higher. A move through $1780.60 will signal a resumption of the downtrend. A move through $1774.60 will reaffirm the downtrend. The main trend will change to up on a trade through $1836.90.

The minor trend is up. It turned higher on Tuesday. This is controlling the momentum. A trade through $1810.60 will indicate the buying is getting stronger. A move through $1780.60 will change the minor trend to down.

On the upside, the resistance zone is $1800.00 to $1828.80.

The first support is a 50% level at $1795.00. This is followed by a short-term retracement zone at $1757.40 to $1738.60.

Daily Swing Chart Technical Forecast

The direction of the December Comex gold futures contract early Thursday is likely to be determined by trader reaction to $1795.00 and $1800.00.

Bearish Scenario

A sustained move under $1795.00 will indicate the selling is getting stronger. If this creates enough downside momentum then look for the selling to possibly extend into the minor bottom at $1780.60. Taking out this level could trigger a move into the main bottom at $1774.60.

Taking out $1774.60 will reaffirm the downtrend. This could trigger a further break into the short-term retracement zone at $1757.40 to $1738.60.

Bullish Scenario

A sustained move over $1800.00 will signal the presence of buyers. If this creates enough upside momentum then look for the rally to possibly extend into the Fibonacci level at $1828.80. This is followed by a pair of main tops at $1836.90 and $1837.50.