Gold Price Futures (GC) Technical Analysis – Hovering Above Retracement Zone Support at $1889.70 to $1842.60

Gold futures are trading lower early Wednesday as an uptick in the U.S. Dollar against a basket of major currencies is dampening foreign demand for the dollar-denominated asset. Traders are also reacting to the first U.S. presidential debate that accomplished nothing for voters, but fueled a lot of uncertainty for investors.

At 07:37 GMT, December Comex gold futures are trading $1891.30, down $11.30 or -0.59%.

Gold was up ahead of the debate as investors bought the metal as a hedge, but since nothing major developed that could drive the U.S. Dollar lower, traders lifted their hedges in gold and bought the greenback. This suggests that investors are leaning toward a Trump victory.

Daily December Comex Gold

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. However, momentum has been trending higher since the formation of the closing price reversal bottom on September 24.

A trade through $1851.00 will negate the closing price reversal bottom and signal a resumption of the downtrend. The main trend will change to up on a move through $1983.80.

The main range is $1690.10 to $2089.20. Its retracement zone at $1889.70 to $1842.60 is support. This zone is also controlling the near-term direction of the market. Traders have spent a lot of time inside this zone as they try to establish a new support base.

The new minor range is $1851.00 to $1904.80. Its 50% level at $1877.90 is potential support.

Another minor range is $1983.80 to $1851.00. Its 50% level at $1917.40 is a potential upside target and trigger point for an acceleration to the upside.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the December Comex gold market on Wednesday is likely to be determined by trader reaction to the main 50% level at $1889.70.

Bullish Scenario

A sustained move over $1889.70 will indicate the presence of buyers. The first upside target is $1904.80, followed by $1917.40. The latter is a potential trigger point for an acceleration to the upside with $1970.10 the next likely upside target.

Bearish Scenario

A sustained move under $1889.70 will signal the presence of sellers. The first downside target is the 50% level at $1877.90. If the latter fails then look for a possible test of $1851.00 to $1842.60. #gold##XAU/USD#

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