Gold Price Futures (GC) Technical Analysis – Trade Through $1488.90 Confirms Closing Price Reversal Top

Based on the early price action and the current price at $1508.00, the direction of the December Comex gold futures contract on Wednesday is likely to be determined by trader reaction to the pivot at $1517.50.
James Hyerczyk

Gold futures are edging slightly lower on Wednesday despite weaker U.S. Treasury yields and a drop in demand for higher risk assets. The selling pressure stems from a whip-saw trade on Tuesday that saw prices jump to a multi-year high in reaction to protests in Hong Kong and a plunge in the Argentine peso then retreat swiftly after the Trump Administration announced the delay of tariffs. The market settled lower on Tuesday, posting a potentially bearish closing price reversal top.

At 06:52 GMT, December Comex gold futures are trading $1508.00, down $6.10 or -0.40%.

Daily December Comex Gold

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, the closing price reversal top indicates a shift in momentum to the downside.

A trade through $1546.10 will negate the closing price reversal top and signal a resumption of the uptrend. A move through $1488.90 will confirm the closing price reversal top. This could trigger the start of a 2 to 3 day counter-trend break.

The minor range is $1546.10 to $1488.90. Its 50% level or pivot at $1517.50 is controlling the direction of the market early in the session.

The short-term range is $1412.10 to $1546.10. Its retracement zone at $1479.10 to $1463.30 is one downside target.

The main range is $1396.40 to $1546.10. Its retracement zone at $1471.30 to $1453.60 is another potential downside target.

Since the main trend is up, buyers are likely to come in on a test of these levels.

Daily Swing Chart Technical Forecast

Based on the early price action and the current price at $1508.00, the direction of the December Comex gold futures contract on Wednesday is likely to be determined by trader reaction to the pivot at $1517.50.

Bearish Scenario

A sustained move under $1517.50 will indicate the presence of sellers. If this move is able to attract enough sellers then look for an eventual retest of yesterday’s low at $1488.90. Taking out this level will confirm the closing price reversal top. This could lead to a test of a series of retracement levels at $1479.10, $1471.30, $1463.30 and $1453.60. Buyers could come in on a test of these levels.

Bullish Scenario

A sustained move over $1517.50 will signal the presence of buyers. If this move is able to generate enough upside momentum then look for a test of $1546.10.

Taking out $1546.10 will negate the closing price reversal bottom and signal a resumption of the uptrend.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US