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Gold Price Futures (GC) Technical Analysis – Decision Time for Gold Bulls at $1839.00 – $1839.90

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Gold futures are trading more than 1% higher on Thursday at its highest level since July 15 on the back of dovish comments from Federal Reserve Chairman Jerome Powell who suggested late Wednesday the central bank was unlikely to hike rates anytime soon. Powell based this suggestion on the notion that the U.S. job market still had “some ground to cover” before it would be time to pullback support to the economy.

At 18:18 GMT, December Comex gold futures are at $1835.10, up $30.50 or +1.69%.

After trading sideways for about two weeks, pent-up demand took over, triggering a spike to the upside which began with a mild reversal bottom late Wednesday. Fundamentally, the move is being supported by a plunge in the U.S. Dollar. Traders could also be showing a delayed reaction to the recent news that showed U.S. Real Treasury yields hit an all-time low.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The trend turned up earlier in the session when buyers took out $1814.50. The trend will change back to down if sellers take out the two main bottoms at $1795.60 and $1793.10.

The main range is $1910.10 to $1754.50. Its retracement zone at $1839.90 to $1859.70 is the next upside target zone. Trader reaction to this zone could determine the near-term direction of the market.

On the downside, support is lined up at $1816.10 and $1795.00.

Daily Swing Chart Technical Forecast

The late session momentum indicates that December Comex gold has a clean shot at the cluster formed by the main top at $1839.00 and the main 50% level at $1839.90.

Sellers could show up on the first test of $1839.00 – $1839.90. However, the latter is also a trigger point for an acceleration into the next potential upside target at $1859.70.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire

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