Gold futures are trading lower at the mid-session in a lackluster trade as prices continue to consolidate inside a three-week range. Helping to underpin prices are concerns over the spread of the coronavirus Delta variant and weaker Treasury yields. Putting a cap on gains today is better than expected U.S. Factory Orders.
At 16:24 GMT, December Comex gold futures are trading $1813.20, down $9.00 or -0.49%.
Gold is stuck in a consolidation pattern ahead of Friday’s U.S. Non-Farm Payrolls report that could determine when and how the Federal Reserve will begin its tapering of bond stimulus.
Traders aren’t sure if the Fed will announce its plans at the Jackson Hole central bankers’ summit on August 26-28, or wait until its next policy meeting on September 21-22.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. A trade through $1839.00 will signal a resumption of the uptrend. A move through the pair of bottoms at $1795.60 and $1793.10 will change the main trend to down.
The minor range is $1795.60 to $1837.50. The market has been straddling its 50% level at $1815.30 the last four sessions.
The major support is a long-term 50% level at $1795.00.
The short-term range is $1910.10 to $1754.50. Its retracement zone at $1839.90 to $1859.70 is the next upside target and potential resistance area.
Daily Swing Chart Technical Forecast
The direction of the December Comex gold futures contract into the close is likely to be determined by trader reaction to $1815.30.
A sustained move under $1815.30 will indicate the presence of sellers. If this creates enough downside momentum then look for the selling to possibly extend into the cluster at $1795.60 to $1793.10.
A sustained move over $1815.30 will signal the presence of buyers. This would be a potential trigger point for an acceleration into $1837.50 to $1839.90 if the trading volume were average to above average.