Gold Price Futures (GC) Technical Analysis – Strengthens Over $1902.10, Weakens Under $1880.00

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Gold futures are lower but rebounding early Wednesday after a late sell-off the previous session. Some traders are saying that position-squaring and profit-taking are driving the price action. A stable U.S. Dollar is also underpinning the precious metal.

Earlier in the session, gold hit a one-week low in follow-through selling from Tuesday after President Donald Trump called off negotiations over the fiscal aid package that was meant to stimulate the economy, until after the November 3 election.

Daily December Comex Gold

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through $1927.00 will change the main trend to up. A move through $1851.00 will signal a resumption of the downtrend.

The minor trend is also down after Tuesday’s whip-saw action. A move through $1877.10 will indicate the selling pressure is getting stronger, while a move through $1927.00 changes the minor trend to up.

A series of retracement levels indicates the possibility of a choppy trade over the short-run.

On the downside, retracement level support comes in at $1889.70 and $1880.00. On the upside, retracement level resistance drops in at $1902.10 and $1917.40.

The early price action suggests investors are still showing respect for the major retracement zone at $1889.70 to $1842.60.

The short-term range is $2089.20 to $1851.00. Its retracement zone at $1970.10 to $1998.20 is a potential upside target.

Daily Swing Chart Technical Forecast

The early price action on Wednesday suggests that the direction of the December Comex gold market is likely to be determined by trader reaction to the main 50% level at $1889.70.

Bullish Scenario

A sustained move over $1889.70 will indicate the presence of buyers. The first upside target is the 50% level at $1902.10. Overtaking this level could drive the market into $1917.40, followed closely by the main top at $1927.00. This is a potential trigger point for an acceleration to the upside.

Bearish Scenario

A sustained move under $1889.70 will signal the presence of sellers. The first downside targets are $1880.00 and $1877.10. The latter is a potential trigger point for an acceleration to the downside with new targets coming in at $1851.00 and $1842.60.