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James Hyerczyk

Gold futures are under pressure on Friday as rising Treasury yields continue to make the U.S. Dollar a more attractive asset, weakening demand for the dollar-denominated asset. The benchmark 10-year bond yield scaled a fresh high since March, holding above 1%, and helping the dollar rebound strongly.

At 10:06 GMT, February Comex gold is trading $1891.80, down $21.80 or -1.14%. The market is also trading lower for the week after erasing earlier gains.

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In economic news, the government will release its December Non-Farm Payrolls report at 13:30 GMT. It will be used to gauge the jobs market health. Analysts predict the Non-Farm Employment Change will show the economy added 60,000 jobs. The unemployment rate is expected to rise to 6.8% and Average Hourly Earnings could dip to 0.2%.

Daily February Comex Gold

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, but momentum is trending lower following the confirmation of Wednesday’s closing price reversal top. The main trend will change to down on a move through $1820.00. A move through $1962.50 will signal a resumption of the uptrend.

The minor trend is also up. A trade through $1859.00 will change the minor trend to down. This will confirm the shift in momentum.

The first minor range is $1820.00 to $1962.50. Its 50% level at $1891.30 is currently being straddled.

The short-term range is $1767.20 to $1962.50. Its retracement zone at $1864.90 to $1841.80 is the primary target zone.


Daily Swing Chart Technical Forecast

The direction of the February Comex gold market is likely to be determined by trader reaction to the 50% level at $1891.30.

Bullish Scenario

A sustained move over $1891.30 will indicate the presence of buyers. If this move is able to create enough upside momentum then the main 50% level at $1933.20 will become a reasonable upside target.

Bearish Scenario

A sustained move under $1891.30 will signal the presence of sellers. This could generate the downside momentum needed to challenge the short-term retracement zone at $1864.90 to $1841.80.

Since the main trend is up, buyers could come in on a test of $1864.90 to $1841.80.

For a look at all of today’s economic events, check out our economic calendar.
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