James Hyerczyk
Add to Bookmarks

Comex gold futures moved higher on Tuesday, boosted by a weaker U.S. Dollar and concerns over a second surge in coronavirus cases, although the volume and the trading range were so tight, it was hard to tell if we were witnessing actual buying or just short-covering.

At 20:46 GMT, December Comex gold is trading $1909.00, up $3.30 or +0.17%.

Know where Gold is headed? Take advantage now with 

Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

The narrow trading range was also caused by investors shifting their focus on next week’s U.S. presidential election. Democratic challenger Joe Biden leads President Donald Trump in national polls but the race is much tighter in battleground states that determine the election outcome.

The consensus among traders is that a win by Biden will mean massive stimulus on coronavirus relief and infrastructure spending. This should weaken the U.S. Dollar and drive gold prices higher. Longer-term, the market is expected to be well-supported by accommodative central banks.

Daily December Comex Gold

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through $1936.00 will change the main trend to up. A move through $1885.00 will reaffirm the downtrend.

The short-term range is $1983.80 to $1851.00. Its 50% level or pivot at $1917.40 is potential resistance.

The longer-term retracement zone at $1889.70 to $1842.60 is support.

The market has been trading inside a pair of 50% levels at $1889.70 and $1917.40 for four sessions. This usually indicates investor indecision and impending volatility.


Short-Term Outlook

We’re looking for a rangebound trade as long as the market remains inside $1889.70 and $1917.40.

Look for a bullish tone to develop on a sustained move over $1917.40. This could trigger a rally into the main tops at $1936.00 and $1939.40. The latter is a potential trigger point for an acceleration to the upside with the next major target coming in at $1970.10.

A sustained move under $1889.70 will indicate the selling is getting stronger. Taking out the main bottoms at $1885.00 and $1877.10 could trigger the start of an acceleration to the downside with the next major targets a main bottom at $1851.00 and the major Fibonacci level at $1842.60.

For a look at all of today’s economic events, check out our economic calendar.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker