Gold Price Futures (GC) Technical Analysis – Strengthens Over $1917.40, Weakens Under $1889.70The market is currently set-up for a breakout over $1917.40 and a breakdown under $1889.70.
Gold futures are up nearly 1% on Thursday to firm above the key $1,900 level on renewed hopes for U.S. stimulus that could help ease the economic pain from the coronavirus, while a weaker U.S. Dollar also boosted the dollar-denominated asset’s appeal.
Investors were eyeing talks between U.S. House of Representatives Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin to reach a deal on the long-awaited COVID-19 relief bill.
Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart. However, momentum has been trending higher since the formation of the closing price reversal bottom on September 24.
A trade through $1851.00 will negate the closing price reversal bottom and signal a resumption of the downtrend. The main trend will change to up on a move through $1983.80.
The main support is a retracement zone at $1889.70 to $1842.60.
The minor range is $1983.80 to $1851.00. Its 50% level at $1917.40 is the first target. On Friday, the market posted its high at $1917.90.
The short-term range is $2089.20 to $1851.00. Overtaking the pivot could trigger a surge into its retracement zone at $1970.10.
The market is currently set-up for a breakout over $1917.40 and a breakdown under $1889.70. The catalysts for the next move are likely to be a stimulus deal or a surprise in the U.S. Non-Farm Payrolls report on Friday.
The 50% level at $1917.40 is a potential trigger point for an acceleration into the short-term 50% level at $1970.10.
The main 50% level at $1889.70 is a potential trigger point for an acceleration to the downside with $1851.00 to $1842.60 the next likely targets.