Gold Price Futures (GC) Technical Analysis – Treading Water Between 50% Levels

Gold futures are edging lower on Monday in a lackluster trade. The market is likely being pressured by rising Treasury yields and increased demand for risky assets. Traders are just making a market ahead of the start of the trade talks between the United States and China on October 10-11. The light volume suggests investors aren’t committing aggressively to either side.

At 16:04 GMT, December Comex gold is trading $1504.90, down 8.00 or -0.52%.

Furthermore, the Fed Meeting Minutes are due to come out on Wednesday. And Fed Chair Jerome Powell speaks at 17:00 GMT.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through $1525.80 will change the main trend to up. A move through $1465.00 will signal a resumption of the downtrend.

The short-term range is $1543.30 to $1465.00. Its 50% level or pivot is $1504.20.

The intermediate range is $1566.20 to $1465.00. Its 50% level or pivot is $1515.60.

The main range is $1489.10 to $1471.00.

Daily Technical Forecast

Based on the early price action and the current price at $1504.90, the direction of the December Comex gold futures market the rest of the session on Monday is likely to be determined by trader reaction to the 50% level at $1504.20.

Bullish Scenario

A sustained move over $1504.20 will indicate the presence of buyers. If this is able to generate enough upside momentum then look for the rally to possibly extend into the intermediate 50% level at $1515.60.

Bearish Scenario

A sustained move under $1504.20 will signal the presence of sellers. The first target is an uptrending Gann angle at $1497.00. This is a potential trigger point for an acceleration to the downside with $1489.10 the next likely target.