Gold Price Futures (GC) Technical Analysis – Testing Key Support Cluster at $1510.80 to $1510.70

Gold futures plunged on Wednesday amid positive comments from President Trump on U.S.-China trade relations and after the transcript of the phone call between Trump and the Ukrainian President failed to increase the chances of his impeachment. Both events drove up demand for risky assets and Treasury yields, triggering a surge in the U.S. Dollar, while making dollar-denominated gold a less-desirable asset.

At 17:39 GMT, December Comex gold is trading $1511.80, down $28.40 or -1.84%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. Momentum, however, has been trending higher since the formation of the closing price reversal bottom at $1490.70 on September 18.

A trade through $1566.20 will change the main trend to up. A move through $1490.70 will signal a resumption of the downtrend.

The minor trend is up. A trade through $1490.70 will change the minor trend to down. This will also shift momentum to the downside. A new minor top has formed at $1543.30.

The main range is $1412.10 to $1566.20. Its retracement zone at $1489.10 to $1471.00 is support.

The intermediate range is $1566.20 to $1490.70. Its retracement zone at $1528.50 to $1537.40 is resistance.

The short-term range is $1490.70 to $1543.30. Its retracement zone is currently being tested.

Daily Technical Forecast

Based on the earlier price action and the current price at $1511.80, the direction of December Comex gold into the close is likely to be determined by trader reaction to the price cluster at $1510.80 to $1510.70.

Bearish Scenario

A sustained move under $1510.70 will indicate the selling is getting stronger. This could trigger a further break into the next uptrending Gann angle at $1500.70. This is followed by the main bottom at $1490.70, the main 50% level at $1489.10 and the long-term uptrending Gann angle at $1488.70.

Bullish Scenario

A sustained move over $1510.80 will signal the presence of buyers. This could trigger a quick rally into the short-term 50% level at $1517.00.

Taking out $1517.00 will indicate the buying is getting stronger. This could trigger a late session acceleration into the intermediate 50% level at $1528.50.

Overview

Pay close attention to trader reaction to the potential support cluster at $1510.80 to $1510.70.