Gold Price Futures (GC) Technical Analysis – Trend Down, but Momentum Shifts to Upside

Holding above the downtrending Gann angle at $1518.20 will indicate that buyers are coming in ahead of the close. This could trigger a late session rally into a 50% level at $1528.50, followed by a Fibonacci level at $1537.40 and a downtrending Gann angle at $1542.20.
James Hyerczyk
Comex Gold

Gold futures soared late in the session on Friday after U.S. Treasury yields fell sharply and traders dumped risky assets. The price action was fueled by the news that Chinese trade negotiators had cancelled a visit to meet U.S. farmers after they wrapped up trade talks in Washington sooner than expected.

At 20:34 GMT, December Comex gold futures are trading $1523.60, up $17.40 or +1.16%.

According to reports, there was no explanation as to why they were cutting their trip short. The jump in demand for safe-haven assets like Treasurys, gold and the Japanese Yen indicate that investors feel the need to take protection over the weekend in case there is bad news about the high level negotiations scheduled for early October.

Daily December Comex Gold

Daily Technical Analysis

The main trend is down according to the daily swing chart, however, momentum shifted to the upside with the formation of the closing price reversal bottom at $1490.70 on September 18 and its subsequent confirmation on Friday.

A trade through $1490.70 will negate the reversal bottom and signal a reversal of the downtrend. The main trend will change to up on a trade through $1566.20.

The minor trend is up. It changed to up when buyers took out the minor top at $1519.70. This confirmed the change in momentum.

The major support is the $1489.10 to $1471.00 retracement zone. The first upside target is the short-term retracement zone at $1528.50 to $1537.40.

Daily Technical Forecast

Holding above the downtrending Gann angle at $1518.20 will indicate that buyers are coming in ahead of the close. This could trigger a late session rally into a 50% level at $1528.50, followed by a Fibonacci level at $1537.40 and a downtrending Gann angle at $1542.20.

A break back under $1518.20 will likely lead to a test of the uptrending Gann angle at $1506.70.

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

Top Promotions

Top Brokers

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