Gold Price Futures (GC) Technical Analysis – Consolidating Between $1709.10 and $1739.00 Retracement Levels

Gold futures are trading a little better late in the session on Friday after giving back more than half of its earlier gains. A rebound in the U.S. Dollar after a steep decline and firm U.S. Treasury yields are behind the intraday giveback in the gold market.

At 18:30 GMT, December Comex gold futures are trading $1728.00, up $7.80 or +0.45%. The SPDR Gold Shares ETF (GLD) is at $159.81, up $0.83 or +0.52%.

Investors now await U.S inflation data for August due next Tuesday after recent hawkish comments from Fed Chair Jerome Powell cemented bets of a supersized rate hike. Recent Fed data has shown that while inflation is still climbing, the pace of its rise is slowing.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. However, momentum is edging higher. A trade through $1778.80 will change the main trend to up, while a move through $1699.10 will reaffirm the downtrend.

The minor trend is up. This is controlling the momentum.

The minor range is $1778.80 to $1699.10. Its 50% level at $1739.00 is resistance. It stopped the rally earlier today at $1740.50.

On the upside, the next resistance is a pivot at $1760.40. On the downside, the nearest support is a long-term 50% level at $1709.10.

Short-Term Outlook

Trader reaction to the minor pivot at $1739.00 is likely to determine the direction of the December Comex gold futures contract into the close on Friday.

Bearish Scenario

A sustained move under $1739.00 will indicate the presence of sellers. This could lead to a test of the minor pivot at $1719.80. If this fails then look for the selling to possibly extend into the long-term support at $1709.10.

The major support is a pair of main bottoms at $1699.10, $1696.10 and the March 30, 2021 main bottom at $1694.50.

Bullish Scenario

A sustained move over $1739.00 will signal the presence of buyers. If this move generates enough upside momentum then look for a late session surge into $1760.40.