Gold Price Futures (GC) Technical Analysis – Weekly Value Zone $1298.10 to $1286.80

December Comex Gold closed lower last week. The price action made $1362.40 a new minor top. The top fell well short of the last two main tops at $1392.60 and $1396.00. Last week, prices were being driven lower by a sharp rise in U.S. Treasurys and increased demand for higher risk assets.

Weekly Technical Analysis

The main trend is up according to the weekly swing chart. A trade through $1362.40 will signal a resumption of the uptrend with $1392.60 to $1396.00 the next potential upside markets.

The main range is $1139.70 to $1396.00. Its retracement zone at $1298.10 to $1267.90 is a potential support zone.

The short-term range is $1211.10 to $1362.40. Its 50% level at $1286.80 is the primary downside target. It falls inside the main retracement zone. Combining the two retracement zones makes $1298.10 to $1286.80 a valid downside target. Since the main trend is up, we could see a technical bounce a test of this area.

Weekly Forecast

Based on last week’s close at $1325.20, the direction of the gold market this week is likely to be determined by trader reaction to the steep downtrending angle at $1330.40.

A sustained move under $1330.40 will signal the presence of sellers. The weekly chart shows plenty of room to the downside with the next potential targets at $1298.10, $1291.10 and $1286.80. Since the main trend is up, we’re likely to see buyers come in on test of $1298.10 to $1286.80.

Overtaking the steep downtrending angle at $1330.40 will signal the presence of buyers. The first target is a long-term downtrending angle at $1333.00. Overcoming this angle will indicate the buying is getting stronger. This may create enough upside momentum to challenge a pair of downtrending angles at $1346.40 and $1354.40. The latter is the last major resistance angle before the $1362.40 main top.

This week’s bias is to the downside as long as the gold market remains under $1330.40. If investors are waiting for value then we shouldn’t see any strong buying until the market reaches $1298.10 to $1286.80.