Gold Price Futures (GC) Technical Analysis – Surprisingly Strong With $1496.40 to $1498.70 Near-Term TargetsOn the upside, the targets are a pair of uptrending Gann angles at $1496.70 and $1498.70. Crossing to the strong side of these angles will put gold in an extremely bullish position. This could trigger an acceleration into the main top at $1532.40.
Gold prices continue to hold onto gains late Tuesday despite a recovery in the stock market, a stronger U.S. Dollar and firmer Treasury yields. Traders are saying the market is being underpinned by rising uncertainty about economic growth. The price action suggests that gold buyers may be digging in for the long haul and may not be willing to react to every short-term news event.
At 17:56 GMT, December Comex gold is trading $1483.50, up $7.00 or +0.46%.
Gold traders appear to be looking at the long-term potential for gold especially since it looks like the United States and China are in no position to end the current trade dispute. Goldman Sachs even said earlier today that it doesn’t expect an end to the conflict before the November 2020 election. Gold traders may be betting on a recession to hit the economy before then.
Daily Technical Analysis
The main trend is up according to the daily swing chart. The next major upside target is the March 14, 2014 main top at $1532.40. A trade through $1412.10 will change the main trend to down.
There is the danger of a short-term reversal to the downside if the dollar and equity markets get exceptionally strong. The same goes for a surge in Treasury yields.
Daily Technical Forecast
On the downside, the nearest support angle comes in at $1460.10. If this angle fails then prices could retreat into the next uptrending Gann angle at $1436.10.
On the upside, the targets are a pair of uptrending Gann angles at $1496.70 and $1498.70. Crossing to the strong side of these angles will put gold in an extremely bullish position. This could trigger an acceleration into the main top at $1532.40.