Gold Price Futures (GC) Technical Analysis – Trade Through $1761.00 Resumes UptrendThe upside momentum is likely to continue to rise over the near-term if buyers can sustain a move over $1728.70.
Gold futures finished higher on Friday as a rise in coronavirus cases raised concerns over a second wave which could compel governments to implement another lockdown. Prices were relatively flat on Friday but surged to the upside near the mid-session after Apple announced it was reclosing stores in Florida, Texas and Arizona.
On Friday, August Comex gold settled at $1753.00, up $25.10 or +1.45%.
This news triggered a break in U.S. equity markets, driving down 10-year U.S. Treasury yields. Gold reacted to lower demand for risky assets and the drop in yields. This was not safe-haven buying. Those looking for safe-haven protection moved money into Treasurys and the U.S. Dollar.
Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart. A trade through $1761.00 will change the main trend to up. Friday’s rally stopped at $1760.90, but the close puts the market in a strong position to change the main trend to up. A move through $1671.70 will signal a resumption of the uptrend.
The minor trend is up. The minor trend changed to up on Friday. This move also shifted momentum to the upside.
The short-term range is $1789.00 to $1668.40. Its pivot at $1728.70 is controlling the longer-term direction of the market. It is also the nearest support.
Clearing the pivot at $1728.70 was an important development on Friday. The upside momentum is likely to continue to rise over the near-term if buyers can sustain a move over this level.
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