Gold Price Futures (GC) Technical Analysis – Trend Down; Set Up for Break into $1489.20 to $1488.90

Based on Friday’s price action and the close at $1515.50, the direction of the December Comex gold futures contract on Monday is likely to be determined by trader reaction to the short-term pivot at $1527.60.
James Hyerczyk
Comex Gold

Gold futures closed lower on Friday and for the week as a surge in demand for risky assets encouraged investors to book profits and play for a break into more favorable price levels. Stocks posted strong gains last week, Treasury yields firmed, and longs liquidated safe-haven positions in the Swiss Franc and Japanese Yen– all signs that risk was on.

On Friday, December Comex gold futures settled at $1515.50, down $10.00 or -0.66%.

The U.S. Labor Department’s monthly jobs report came in mixed, but that didn’t matter anyway to gold traders since the market has already priced in a 25-basis point rate cut by the Fed later in the month. Comments from Fed Chair Jerome Powell also weighed on gold prices. Powell called the jobs report consistent with a quite strong labor market and he added that despite trade uncertainties he did not foresee or expect a U.S. recession.

Daily December Comex Gold

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. It turned down on September 5 when sellers took out the last swing bottom at $1525.60.

The main trend will change to up on a trade through $1566.20. A trade through last week’s low at $1510.70 will reaffirm the downtrend.

The minor range is $1488.90 to $1566.20. Its 50% level or pivot at $1527.60 is potential resistance.

The short-term range is $1412.10 to $1566.20. Its retracement zone at $1489.20 to $1471.00 is the next potential downside target.

The main range is $1396.40 to $1566.20. Its retracement zone at $1481.30 to $1461.30 is potentially major support.

Aggressive counter-trend buyers are likely to come in on a test of the $1489.20 to $1461.30 area.

Daily Swing Chart Technical Forecast

Based on Friday’s price action and the close at $1515.50, the direction of the December Comex gold futures contract on Monday is likely to be determined by trader reaction to the short-term pivot at $1527.60.

Bearish Scenario

A sustained move under $1527.60 will indicate the presence of sellers. If this creates enough downside momentum then look for a potential break into the short-term 50% level at $1489.20 and the minor bottom at $1488.90. Counter-trend buyers could come in on a test of these levels.

If $1488.90 fails then look for the selling to possibly extend into the short-term Fibonacci level at $1471.00 and the main Fibonacci level at $1461.30.

Bullish Scenario

A sustained move over $1527.60 will signal the return of buyers. This could trigger a rebound rally into a pivot at $1538.50. Sellers could come in on a test of this level. They are going to try to form a secondary lower top.

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

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.
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.