Gold Price Futures (GC) Technical Analysis – Trading on Weak Side of Minor Pivot at $1517.50

Gold prices are under pressure for a second session on Tuesday as investors continue to react to a shift in investor sentiment as global bond yields firm and the U.S. 2-year/10-year Treasury yield is no longer flashing signs of a recession. Increased demand for higher risk assets are also helping to weigh on gold prices as well as the stronger U.S. Dollar.

At 06:33 GMT, December Comex gold futures are trading $1508.10, down $3.70 or -0.24%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, momentum has been trending lower since the formation of the closing price reversal top at $1546.10 on August 13.

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 and the shift in momentum to down.

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 Tuesday. This level is resistance.

The short-term range is $1412.10 to $1456.10. Its retracement zone at $1479.10 to $1463.30 is the first downside target. Since the trend is up, look for buyers to come in on a test of this area.

The main range is $1396.40 to $1546.10. Its retracement zone at $1471.30 to $1453.60 is the major downside target. The short-term retracement zone is actually straddling the main 50% level at $1471.30.

Daily Swing Chart Technical Forecast

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

Bearish Scenario

A sustained move under $1517.50 will indicate the presence of sellers. The daily swing chart shows no support until $1488.90.

Taking out $1488.90 could trigger a break into a series of retracement and potential support levels at $1479.10, $1471.30, $1463.30 and $1463.60.

Bullish Scenario

A sustained move over $1517.50 will signal the presence of buyers. The first target is the former top at $1532.40 and the closing price reversal top at $1546.10.