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.

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