Advertisement
New Zealand markets closed
  • NZX 50

    12,105.29
    +94.63 (+0.79%)
     
  • NZD/USD

    0.5977
    -0.0029 (-0.48%)
     
  • NZD/EUR

    0.5535
    -0.0008 (-0.14%)
     
  • ALL ORDS

    8,153.70
    +80.10 (+0.99%)
     
  • ASX 200

    7,896.90
    +77.30 (+0.99%)
     
  • OIL

    83.11
    -0.06 (-0.07%)
     
  • GOLD

    2,254.80
    +16.40 (+0.73%)
     
  • NASDAQ

    18,254.69
    -26.15 (-0.14%)
     
  • FTSE

    7,952.62
    +20.64 (+0.26%)
     
  • Dow Jones

    39,807.37
    +47.29 (+0.12%)
     
  • DAX

    18,492.49
    +15.40 (+0.08%)
     
  • Hang Seng

    16,541.42
    +148.58 (+0.91%)
     
  • NIKKEI 225

    40,168.07
    -594.66 (-1.46%)
     
  • NZD/JPY

    90.4260
    -0.3540 (-0.39%)
     

Gold Price Futures (GC) Technical Analysis – Setting Up for Breakout While Riding the Storm Out

Gold futures are treading water late Friday after trading inside last Friday’s $1478.00 to $1508.00 range for the entire week as investors were held hostage by growing optimism over a Brexit agreement and a partial trade deal between the U.S. and China. At the same time, the rapidly dropping U.S. Dollar and increasing chances of a Fed rate cut, helped underpin prices.

At 20:24 GMT, December Comex gold futures are trading $1494.20, down $4.10 or -0.27%.

Daily December Comex Gold
Daily December Comex Gold

Daily Technical Analysis

The main trend is down, but the market traded sideways last week, trapped inside last Friday’s trading range and a few 50% levels. The price action suggests investor indecision and impending volatility. Translation:  Be patient. There’s a big move coming.

ADVERTISEMENT

A trade through $1478.00 will signal a resumption of the downtrend. The main trend will change to up on a move through $1522.30.

The main retracement zone support zone is $1489.10 to $1471.00.

Resistance is being provided by a series of 50% levels at $1495.40, $1504.20 and $1515.60.

Daily Technical Forecast

Based on the price action this week, traders seem to be attracted to an uptrending Gann angle at $1491.00 and the main 50% level at $1489.10.

Even if it holds these levels, the next rally is likely to be labored because of a series of resistance levels coming in at $1495.40, $1502.20, $1504.20 and $1507.30.

The buying is likely to start picking up over $1507.30 with the next upside target $1515.60.

The daily chart also shows the market is vulnerable to the downside under $1489.10. If this level is taken out with conviction then we could see an acceleration into a potential support cluster at $1478.00, followed by $1471.00 and $1465.00.

Side Notes

Confusion? Lack of Clarity? Both are good reasons for sitting on your hands and keeping your powder dry. The Brexit Deal is too close to call. A U.S.-China trade deal is still weeks away from being signed. The Fed rate cut is almost a done deal if you believe the CME FedWatch Indicator. However, the Federal Reserve Policymakers are still divided. There’s just too much risk guessing on a direction at current levels.

Looking at this week’s trading range, buy stops are probably piling up over $1508.00 and sell stops under $1478.00.

This article was originally posted on FX Empire

More From FXEMPIRE: