Gold futures price technical analysis (GC) – strengthens to above $ 1,800.00, weakens to below $ 1,795.00
Gold futures were down slightly on Monday after giving up more than half of their previous session’s gains following comments from US Federal Reserve Chief Jerome Powell that inflation could slow the next year and the central bank was on track to start cutting its stimulus measures.
As of 02:58 GMT, December Comex gold futures are trading at $ 1,795.30, down $ 1.00 or -0.06%.
Gold futures hit their highest level since Sept. 7 on Friday before cutting gains following comments from Fed Chairman Jerome Powell on the cut. Price action suggests weak sellers have been pulled off the move as there is little evidence of further buying.
Buyers are cautious which means they are unlikely to pursue the market higher. During the current rally, they seem to be more inclined to buy dips.
Technical analysis of the daily swing chart
The main trend is upward on the daily swing chart. A trade at $ 1,815.50 will signal a resumption of the uptrend. A move to $ 1,760.30 will change the main downward trend.
Gold is currently trading inside a pair of 50% levels at $ 1,795.00 and $ 1,800.00. This area controls the short-term direction of the market.
On the upside, resistance is a long-term 50% level at $ 1,800.00 and a long-term Fibonacci level at $ 1,828.80.
On the downside, the closest support is a series of 50% levels at $ 1,795.00, $ 1,787.90 and $ 1,780.50. These levels are followed by $ 1,768.30 and $ 1,747.40.
Technical forecasts of the daily swing chart
The direction of the December Comex gold market early Monday will likely be determined by the reaction of traders at $ 1,795.00.
A sustained movement of over $ 1,795.00 will indicate the presence of buyers. The first target on the upside is $ 1,800.00.
Taking $ 1,800.00 with large volume could trigger an upward acceleration with $ 1,815.50 the next potential target.
A sustained move below $ 1795.00 will signal the presence of sellers. This could trigger a breakout at $ 1,787.90. Buyers could enter on the first test of this level. If it fails, look for the sale to eventually expand to the next 50% level at $ 1,780.50.
The 50% level at $ 1,780.50 is a potential trigger point for acceleration to another 50% level at $ 1,768.30.
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This article originally appeared on FX Empire