Gold Price Futures (GC) Technical Analysis – Sustained Move Over $1917.40 Targets 50% Level at $1970.10

Gold futures are up sharply late in the session on Monday on optimism around an additional U.S. stimulus bill and a weakened U.S. Dollar despite gains in the major stock indexes after reports that U.S. President Donald Trump could soon be discharged from the hospital.

At 17:23 GMT, December Comex gold futures are trading $1919.90, up $12.30 or +0.64%.

Optimism over fiscal stimulus in the world’s largest economy came into play after upbeat weekend comments from U.S. House Speaker Nancy Pelosi, who said progress was being made on relief legislation.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart, however, momentum is trending higher. A trade through $1851.00 will change the main trend to down. The main trend will change to up on a move through the last main top at $1983.80.

The minor trend is up. The minor trend changed to up early Monday when buyers took out the minor top at $1923.60. This shifted momentum to the upside. The minor trend will change to down on a trade through $1889.70.

The main support is the retracement zone at $1889.70 to $1842.60. The last main bottom at $1851.00 was formed inside this zone.

The minor range is $1983.80 to $1851.00. The market is currently straddling its 50% level at $1917.40.

The short-term range is $2089.20 to $1851.00. Its retracement zone at $1970.10 to $1998.20 is the primary upside target. This zone is controlling the near-term direction of the market.

Short-Term Outlook

The recent price action suggests the next significant move in December Comex gold will be determined by trader reaction to the minor pivot at $1917.40. The daily chart also suggests that the way of least resistance is up.

Bullish Scenario

A sustained move over $1917.40 will indicate the presence of buyers. If this creates enough upside momentum then look for a potential acceleration to the upside with the next major target the short-term retracement zone at $1970.10 to $1998.20.

Bearish Scenario

A failure to hold $1917.40 will signal the presence of sellers. This could trigger a retest of the minor bottom at $1891.20 and the main 50% level at $1889.70.

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