Gold futures price technical analysis (GC) – Bullish traders face a big challenge at $ 1817.50 – $ 1832.70


Gold futures closed slightly better on Friday in a volatile trade that saw the market gain and lose over $ 18.00 within hours. The market was supported at the start of the session by concerns over the rise in the omicron and high inflation. Lower Treasury yields, a weaker US dollar and a sell off in the stock market have also made gold a more attractive asset.

However, towards the end of the session, yields fell from their lows and the US dollar turned higher as investors shed riskier, commodity-based currencies. These moves reinforced the greenback’s appeal as a safe haven, making dollar-denominated gold a less attractive investment.

On Friday, February’s Comex gold stood at $ 1,804.90, up $ 6.70 or + 0.37%. The SPDR Gold Shares ETF (GLD) ended at $ 167.81, down $ 0.35 or -0.21%.

Daily February Comex Gold

Technical analysis of the daily swing chart

The main trend is upward on the daily swing chart. A trade at $ 1,815.70 will signal a resumption of the uptrend. A move to $ 1753.00 will change the main downward trend.

The short-term range is $ 1881.90 to $ 1753.00. Its $ 1,817.50 retracement area to $ 1,832.70 is the main target on the upside.

The minor range is $ 1,753.00 to $ 1,815.70. Its $ 1784.40 retracement area to $ 1777.00 is the first target on the downside.

The main range is $ 1680.00 to $ 1881.90. Its $ 1781.00 retracement area to $ 1757.10 is long term support.

The combination of the minor and major retracement areas creates a cluster of potential support at $ 1784.40, $ 1781.00 and $ 1777.00.

Short term outlook

In contrast, the key area to watch early next week is $ 1,784.00 to $ 1,777.00. This area controls both short and long term directions. Since the main trend is upwards, buyers are likely to test this area.

The first sign of weakness will be a failure to hold $ 1,777.00. Removing this level could trigger an acceleration towards the major Fibonacci level at $ 1757.10. If that level fails, look for the possible start of a prolonged downtrend.

On the upside, the key area is $ 1,817.50 to $ 1,832.70. The early reaction of traders to this area could determine the short-term direction of the market.

The sellers will try to stop the rally with the aim of forming a potentially bearish secondary lower top.

Buyers will try to push the market through the short term Fibonacci level at $ 1,832.70, where it has room for improvement with $ 1,881.90 the next major target.

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This article originally appeared on FX Empire

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