Gold Price Futures (GC) Technical Analysis – Traders Respecting Minor Pivot at $1511.50

The direction of the December Comex gold market the rest of the session on Friday is likely to be determined by trader reaction to the pivot at $1511.50.
James Hyerczyk
Comex Gold

Gold prices are trading higher on Friday shortly before the regular session opening. The market is also set up for its first gain in a month on the back of a weaker U.S. Dollar and general concerns over the lack of progress in U.S.-China trade talks.

The weakness in the U.S. Dollar is being fueled in part by the Fed’s 25-basis point rate cut on Wednesday. The dollar is also posting losses against the British Pound, Swiss Franc and Japanese Yen after the Bank of England (BOE), Swiss National Bank (SNB) and Bank of Japan (BOJ) made no changes to policy.

A weaker greenback tends to make dollar-denominated gold a more attractive investment.

At 09:03 GMT, December Comex gold is trading $1512.30, up $6.10 or +0.40%.

Daily December Comex Gold

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. However, Wednesday’s closing price reversal bottom at $1490.70 may be a sign that momentum is getting ready to shift to the upside. A trade through this bottom will negate the chart pattern and signal a resumption of the downtrend. The main trend will change to up on a trade through $1566.20.

The minor trend is also down. Taking out $1519.70 will change the minor trend to up. This will also shift momentum to the upside.

The first minor range is $1532.20 to $1490.70. Its 50% level or pivot at $1511.50 is resistance. It’s controlling the direction of the market today.

The second minor range is $1488.90 to $1566.20. Its 50% level or pivot at $1527.60 is Additional resistance.

The support is a series of retracement levels at $1489.20, $1481.30, $1471.00 and $1461.30.

Daily Swing Chart Technical Forecast

Gold has been trading sideways for two weeks. Today, it’s trading inside Wednesday’s wide range for a second session. The longer-term price action suggests the market may be forming a support base. The short-term price action indicates investor indecision and impending volatility.

The direction of the December Comex gold market the rest of the session on Friday is likely to be determined by trader reaction to the pivot at $1511.50.

Bearish Scenario

A sustained move under $1511.50 will indicate the presence of sellers. If this creates enough downside momentum then look for the selling to possibly extend into the support cluster at $1490.70, $1489.20 and $1488.90.

Bullish Scenario

A sustained move over $1511.50 will signal the presence of buyers. This could trigger a surge into a minor top at $1519.70, a 50% level at $1527.60 and another minor top at $1532.20.

The minor top at $1532.20 is the trigger point for an acceleration to the upside.

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
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