Gold Price Futures Technical Analysis


Gold futures are trading nearly flat late Tuesday with gains capped by demand for risky assets and a stronger USD.

The market may have been underpinned by slightly weaker US Treasury yields.

Fundamentally, the market was pressured by stronger-than-expected US economic data, but may have been supported by concerns over the lack of details about the US-China trade deal and renewed concerns over BREXIT

At 21:40 GMT, February COMEX gold is trading at 1481.10, up 0.60 or +0.03%.

Daily February COMEX Gold

The main trend is up according to the daily swing chart. But, Northside momentum has been stalled since the formation of the closing price reversal top at $1491.60 on 12 December.

A trade through 1491.60 will signal a resumption of the uptrend. The main trend will change to down on a move through the last swing bottom at 1463.00.

The main range is 1525.20 – 1453.10. Its Fibo retracement zone at 1489.20 – 1497.70 is resistance. This zone stopped the rally at 1489.90 on 4 December and at 1491.60 on 12 December. It is controlling the near-term direction of the market.

The short-term range is 1453.10 – 1491.60. Its Fibo retracement zone at 1472.40 – 1467.80 is support.

February COMEX gold has been trading between a pair of retracement zones for several weeks. It’s also formed 2 higher bottoms and 2 higher Tops. This indicates there is a growing upside bias. The longer the market remains inside the elongated trading range, the bigger the breakout move.

The biggest concern now is the low volume. Without rising volume, a breakout to the Northside is likely to fail. For that matter, the same goes for a break down under support.

What we want to see is a breakout move that is driven by more than just buy stops or sell stops.

Stay tuned…