Gold Futures Price Technical Analysis (GC) – Reaction at $ 1,781.00 to $ 1757.10 Determines Short Term Direction
Gold futures are under pressure Thursday morning, weighed down by strengthening US Treasury and US dollar yields. Catalyst for the sale are hawkish comments from US Federal Reserve Chairman Jerome Powell, who indicated that policymakers could step up the pace of reduction in an effort to curb the spike in inflation.
As of 08:50 GMT, February Comex gold futures are trading at $ 1,770.20, down $ 14.10 or -0.79%.
Meanwhile, traders continue to monitor the new variant of the Omicron coronavirus while assessing its potential impact on the global economy. However, there just doesn’t seem to be enough information available to make a good decision. The biggest concern is that it could render current COVID-19 vaccines ineffective.
Daily February Comex Gold
Technical analysis of the daily swing chart
The main trend is up according to the daily swing chart, however, momentum has been down since the confirmation of the closing price reversal top on November 16.
A trade at $ 1761.00 will change the main downtrend. A move to $ 1881.90 will signal a resumption of the uptrend. This is highly unlikely, however, given that the market is down 11 sessions from its last major high, it is within the time window for a closing price reversal low.
The minor trend is downward. This confirms the change of pace.
The main range is $ 1,680.00 to $ 1,881.90. The market is currently testing its retracement zone at $ 1,781.00 to $ 1,757.10. This area controls the short-term direction of the market.
The short-term range is $ 1,881.90 to $ 1,767.80. Its 50% level at $ 1,824.90 is the main upside target. This area will go down as the market goes down.
Technical forecasts of the daily swing chart
The direction of the February Comex gold futures contract on Thursday will likely be determined by the reaction of traders at $ 1,781.00.
A sustained move below $ 1,781.00 will indicate the presence of sellers. This could lead to a test of the main floor at $ 1,761.00, closely followed by the Fibonacci level at $ 1,757.10.
Pulling out $ 1,757.10 could trigger a downward acceleration with the next target the main floor at $ 1,723.70.
A sustained move above $ 1,781.00 will signal the presence of buyers. If this move is capable of generating bullish momentum, look for a possible short-term rally in the $ 1,824.90 pivot.