Gold Price Futures (GC) Technical Analysis – Sellers in Control; Next Target $1754.50, Followed by $1716.00

Gold futures are trading at their lowest level since June 30 on Friday after a robust U.S. jobs report boosted expectations the Federal Reserve could begin tapering its economic support sooner than previously anticipated.

At 16:41 GMT, December Comex gold is trading $1759.90, down $49.00 or -2.71%.

Earlier today, the U.S. government reported that Non-Farm Payrolls exceeded expectations with a 943,000 addition in jobs last month and the unemployment rate dropped to 5.4%, according to the Bureau of Labor Statistics. Average hourly earnings also increased more than expected, rising 0.4% for the month.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. The trend turned down earlier in the session when sellers took out a pair of main bottoms at $1795.60 and $1793.10. A trade through the pair of main tops at $1837.50 and $1839.00 will change the main trend to up.

The main range is $1683.00 to $1922.00. The market is currently trading on the weak side of its retracement zone at $1774.30 to $1802.50, making this area resistance.

Additional resistance is the long-term 50% level at $1795.00. The major support is the long-term Fibonacci level at $1716.00.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the December Comex gold market into the close will be determined by trader reaction to $1774.30.

Bearish Scenario

A sustained move under $1774.30 will indicate the selling pressure is getting stronger. This could trigger a move into the next main bottom at $1754.50. Taking out this level will reaffirm the downtrend and could trigger a further break into the major Fibonacci level at $1716.00.

Bullish Scenario

A sustained move over $1774.30 will signal the presence of buyers. This could trigger a late session short-covering rally with potential targets a pair of 50% levels at $1795.00 and $1802.50.