logo |

News

    Home   >     Industry    >     Main body

    Gold Price Futures (GC) Technical Analysis – Longer-Term Support Zone at $1780.50 – $1705.20 Next Target Area

    Abstract:Given the current downside momentum, we think the gold market is headed for a retest of the long-term retracement zone at $1780.50 to $1705.20.

      Gold futures are down sharply on Friday and the market is headed for its second consecutive weekly loss as a surge in the U.S. Dollar dampened demand for the dollar-denominated asset. The dollar was on track to post its biggest weekly gain against a basket of major currencies since October 2020.

      At 21:32 GMT, February Comex gold futures are trading $1825.70, down $25.70 or -1.39%.

      Traders said one catalyst behind the strength in the U.S. Dollar was data showing the COVID-19 pandemic‘s continuing toll on the economy, which boosted the dollar’s appeal as a safe-haven asset.

      Daily February Comex GoldDaily Swing Chart Technical Analysis

      The main trend is down according to the daily swing chart. A trade through $1817.10 will signal a resumption of the downtrend. The main trend will change to up on a move through $1962.50.

      The minor trend is also down. The minor trend will change to up on a move through $1864.00. This will also shift momentum to the upside.

      The short-term range is $1767.20 to $1962.50. Its 50% level at $1864.90 is resistance.

      The minor range is $1962.50 to $1817.10. Its 50% level at $1889.80 is another potential resistance level.

      The next downside target is a major long-term retracement zone at $1780.50 to $1705.20.

      Short-Term Outlook

      Given the downtrend and the downside momentum, we think the gold market is headed for a retest of the long-term 50% to 61.8% retracement zone at $1780.50 to $1705.20. This zone stopped the selling at $1767.20 on November 30.

      On the upside, the series of lower tops since last years top at $2099.20 is pretty clear. They come in at $2032.50, $2008.50, $1991.60, $1973.30 and $1962.50. Unless the buying is strong enough to overcome these levels, we should continue to see downside pressure.

      Long-term traders are looking for value so we could see buyers step in on a test of $1780.50 to $1705.20. They are banking of the Fed to keep interest rates at historically low levels until at least 2023.

      Short-term traders are getting punished, however, by rising U.S. Treasury yields. Over the short-run, gold should remain under pressure as long as yields remain attractive enough to draw investment capital away from non-yielding gold.

    Latest News

    Singapore Dollar

    • United Arab Emirates Dirham
    • Australia Dollar
    • Canadian Dollar
    • Swiss Franc
    • Chinese Yuan
    • Danish Krone
    • Euro
    • British Pound
    • Hong Kong Dollar
    • Hungarian Forint
    • Japanese Yen
    • South Korean Won
    • Mexican Peso
    • Malaysian Ringgit
    • Norwegian Krone
    • New Zealand Dollar
    • Polish Zloty
    • Russian Ruble
    • Saudi Arabian Riyal
    • Swedish Krona
    • Singapore Dollar
    • Thai Baht
    • Turkish Lira
    • United States Dollar
    • South African Rand

    United States Dollar

    • United Arab Emirates Dirham
    • Australia Dollar
    • Canadian Dollar
    • Swiss Franc
    • Chinese Yuan
    • Danish Krone
    • Euro
    • British Pound
    • Hong Kong Dollar
    • Hungarian Forint
    • Japanese Yen
    • South Korean Won
    • Mexican Peso
    • Malaysian Ringgit
    • Norwegian Krone
    • New Zealand Dollar
    • Polish Zloty
    • Russian Ruble
    • Saudi Arabian Riyal
    • Swedish Krona
    • Singapore Dollar
    • Thai Baht
    • Turkish Lira
    • United States Dollar
    • South African Rand
    Current Rate  :
    --
    Amount
    Singapore Dollar
    Available
    -- United States Dollar
    Risk Warning

    The Database of WikiFX comes from the official regulatory authorities , such as the FCA, ASIC, etc. The published content is also based on fairness, objectivity and fact. WikiFX doesn't ask for PR fees, advertising fees, ranking fees, data cleaning fees and other illogical fees. WikiFX will do its utmost to maintain the consistency and synchronization of database with authoritative data sources such as regulatory authorities, but does not guarantee the data to be up to date consistently.

    Given the complexity of forex industry, some brokers are issued legal licenses by cheating regulation institutes. If the data published by WikiFX are not in accordance with the fact, please click "Complaints "and "Correction" to inform us. We will check immediately and release the results.

    Foreign exchange, precious metals and over-the-counter (OTC) contracts are leveraged products, which have high risks and may lead to losses of your investment principal. Please invest rationally.

    Special Note, the content of the Wikifx site is for information purposes only and should not be construed as investment advice. The Forex broker is chosen by the client. The client understands and takes into account all risks arising with Forex trading is not relevant with WikiFX, the client should bear full responsibility for their consequences.