Technical Analysis

Technical Analysis for Gold Futures:


  • Gold Futures are currently testing a critical resistance level marked by the Previous All-Time High (ATH) at $2093.2.
  • The long-term ascending support line has formed an ascending trianlge which, iff a break occurs, could lead to a significant upside.
  • The Momentum indicator is positive, suggesting that buying pressure has been persistent.
GC ascending trianlge weekly chart momentum indicator

Key Levels to Watch on the Weekly:

  • Resistance: The ATH of around $2093.2 is the immediate level to watch. A decisive close above this level could indicate potential for further upside.
  • Support: The ascending trend line is important for bulls, currently near the $1880 region. A break below this could signal a shift in trend but is unlikely in the current market environment.

Daily Chart Observations:

  • On the daily timeframe, Gold Futures saw a vol spike last week, which occurred as prices approached the ATH resistance level. This came after key inflation data last week.
  • The 50-day Simple Moving Average (SMA) is trending above the 200-day SMA, a bullish signal as the MA’s widen further.
daily GC chart with moving averages and volume

Key Levels to Watch on the Daily:

  • Resistance: Alongside the ATH, the $2100 round figure may act as a psychological level.
  • Support: The 50-day SMA at $2043.2 is the first level of support, with the 200-day SMA at $1981.4 serving as a stronger, more established support zone.

Potential Trades:

  • Bullish Scenario: If we see a strong weekly close above the ATH, it could be an opportunity to go long with a target of $2100 and potentially higher. Stop losses placed below the weekly ascending support line.

Given the current price action and the significance of the ATH level, we must be prepared for volatility and swift price movements. Traders should watch for a confirmed breakout or rejection at the ATH to gauge the market’s strength. Remember, the markets can move contrary to expectations, so it is crucial to use stop losses to protect capital.