Gold Price Futures (GC) Technical Analysis – Best Value Zone Target $1533.20 to $1514.30

Gold futures are trading lower late Tuesday, but well off its intraday low. The market was pressured early in the session ahead of the much awaited signing of an interim U.S.-China trade deal that dampened the appeal of bullion, but it bounced off its low on a report by Bloomberg that said U.S. tariffs targeting Chinese goods will stay on through the 2020 election.

At 21:32 GMT, February Comex gold is trading $1546.80, down $3.80 or -0.25%.

The Bloomberg report seemed to rattle investors to the point where a few decided to trim positions in the stock market. U.S. Treasury yields also dipped, dragging down the U.S. Dollar, while driving up foreign demand for dollar-denominated gold.

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, momentum is trending lower. A trade through $1613.30 will change the main trend to up. The main trend will change to down on a move through $1463.00.

The main range is $1453.10 to $1613.30. Its retracement zone at $1533.20 to $1514.30 is the primary downside target and value area. Since the main trend is up, buyers are likely to come in on a test of this area.

The minor trend is down. This confirms the shift in momentum to the downside. A trade through $1564.10 will change the minor trend to up.

Short-Term Outlook

Earlier in the session on Tuesday, buyers came in when the market tested an uptrending Gann angle at $1537.10. The price action was expected. With the trend up, buyers tend to come in on breaks into support angles.

The next best support is the 50% level at $1533.20. This is followed by the 61.8% level at $1514.30. Essentially, the 50% to 61.8% zone should be attractive to buyers.

On the upside, the intraday rally was stopped following a test of a steep downtrending Gann angle at $1549.30. This angle is moving down $16 per day so it will come in at $1533.30 on Wednesday. Crossing to the strong side of this angle will be a sign of strength.

Taking out the minor top at $1564.10 will indicate the buying is getting stronger. This could trigger a rally into the next downtrending Gann angle at $1581.30.

Side Notes

Gold is not bearish, it’s just looking for value. So are the major players. The spike to the upside was driven by light volume and headlines. The real buyers don’t chase gold. They wait for pullbacks into support. That’s why $1533.20 to $1514.30 is the key area to watch for the return of buyers.