Gold Price Futures (GC) Technical Analysis – Trading on Weakside of Retracement Zone, $1199.80 Next Target Angle
The strengthening U.S. Dollar is helping to drive gold into its low for the session. The greenback is being supported by a steep plunge in the Euro over concerns about Brexit and the simmering clash between the European Union (EU) and the Italian government. Also pressuring gold prices is the hawkish outlook for interest rates as laid out by the U.S. Federal Reserve last week. This is also making the U.S. Dollar a more attractive investment.
At 1756 GMT, December Comex Gold is trading $1203.10, down $5.50 or -0.45%.
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Daily Technical Analysis
The main trend is down according to the daily swing chart. The market is down 11 sessions from its most recent top at $1246.00 so if there is a turnaround, it will likely be in the form of a closing price reversal bottom.
The minor trend is also down. This is helping to generate the downside momentum.
The main range is $1184.30 to $1246.00. Trading below its retracement zone at $1207.90 to $1215.20 is also helping to generate the strong downside bias.
Daily Technical Forecast
Based on Monday’s price action, the direction of the December Comex Gold market the rest of the session is likely to be determined by trader reaction to the Fibonacci level at $1207.90.
A sustained move under $1207.90 will indicate the presence of sellers. If the downside momentum continues into the close then look for the selling to extend into the uptrending Gann angle at $1199.80. If this angle fails then look for an extended break into the next uptrending Gann angle at $1192.00. This is the last uptrending Gann angle support before the $1184.30 main bottom.
Overtaking $1207.90 late in the session will signal the return of buyers. Closing over $1208.60 will produce a closing price reversal bottom. This could lead to the start of a 2-3 day counter-trend rally.