Gold Price Futures (GC) Technical Analysis – Trading on Weak Side of Long-Term Fib Level at $1250.00

Gold futures finished lower last week after hitting its lowest level since the week-ending January 13, 2017.

December Comex Gold futures settled at $1240.40, down $11.50 or -0.92%.

The price action was primarily driven by the movement in the U.S. Dollar. The Greenback was pushed higher by hawkish testimony before Congress by U.S. Federal Reserve Chairman Jerome Powell on Tuesday and Wednesday then driven lower on Thursday and Friday when President Trump criticized the Fed for raising interest rates.

This news helped drive gold in two directions at times last week.

Weekly Technical Analysis

The main trend is down according to the weekly swing chart. The downtrend was reaffirmed when sellers took out the bottom at $1233.80. A trade through $1221.00 will signal a resumption of the downtrend with the next major target coming in at $1162.00.

The main range is $1162.00 to $1392.30. Its retracement zone at $1250.00 to $1277.20 is controlling the direction of the gold market.

Weekly Technical Forecast

Based on last week’s close at $1240.40, the direction of the December Comex Gold this week will be determined by trader reaction to the long-term, uptrending Gann angle at $1245.00.

A sustained move under $1245.00 will indicate the presence of sellers. This could lead to a retest of last week’s low at $1221.00. Taking out this low could trigger a further break into the next long-term, uptrending Gann angle at $1203.00. This is the last major support angle before the $1162.00 main bottom.

A sustained move over $1245.00 will signal the presence of buyers. This could trigger a fast move into the Fibonacci level at $1250.00.

Overtaking $1250.00 will indicate the buying is getting stronger. This could trigger a rally into a steep downtrending Gann angle at $1268.10.

The Gann angle at $1268.10, moving down $8.00 per week from the $1388.10 main top, has been guiding the gold market lower since the week-ending April 13, 2018. Overtaking this angle will indicate the buying is getting stronger with $1277.20 the next target.

Basically, weakens under $1250.00, strengthens over $1277.20