Gold Price Futures (GC) Technical Analysis – Closing in Bullish Position on Weekly Chart

Gold futures soared more than 1% on Friday as they neared a two-month high after a string of dovish central bank outlooks bought bullish investors time to play the long side of the market.

Gold was trading flat to lower following the release of a stronger than expected U.S. labor market report, but quickly rebounded as traders realized the report was not be strong enough to sway Fed policymakers into changing their tone about rate hikes before the next policy meeting in December.

At 20:30 GMT, December Comex gold futures are trading $1819.40, up $25.90 or +1.44%.

Prices weakened slightly after data showed job gains for the month of October totaled 531,000, higher than the 455,000 estimate provided by Reuters. The report also revised September’s disappointing number up to 312,000 job gains from 194,000 previously, and increased its August number by a similar amount.

However, last Wednesday, Fed Chairman Powell said he would like to see the number of jobs added each month in the 500,000 to 600,000 range. Although this report was inside the range, investors thought it would take a lot more than one solid report to change the Fed’s mind on how fast it should raise rates.

Daily Swing Chart Technical Analysis

The main trend turned back up on Friday when buyers took out $1815.50. Earlier in the week, it had turned down when sellers took out $1760.30.

Taking out the intraday high at $1819.90 will indicate the buying is getting stronger, while a move through $1758.50 will change the main trend to down.

Short-Term Forecast

The outlook for December Comex gold futures is bullish as long as the market can hold above the long-term 50% level at $1795.00.

Trading on the strong side of $1795.00 will indicate the presence of buyers. This could create the upside momentum needed to challenge a Fibonacci level at $1828.80, followed by the July 15, 2021 main top at $1839.00.

If $1795.00 fails as support then gold could become rangebound or in the worst case, break back to $1757.40 to $1738.60.