Sunday, October 2, 2022

April Comex Gold Facing Challenge $1819.00 – $1833.90

Comex gold futures are trading short ahead of the extended session that closes on Friday after posting a two-sided trade for most of the session. Choppy price action was fueled by an intraday reversal by the US dollar and a jump in the US Treasury yield. The catalyst behind the weakness of the opening session was a surprisingly upbeat US jobs report. Support prices later in the day were a concern over rising inflation.

At 21:07 GMT, April Comex Gold is trading at $1808.30, up $4.20 or +0.23%. The SPDR Gold Shares ETF (GLD) is up $0.26 or +0.15% at $168.86.

An unexpected jump in US job growth in January fueled fears about inflation and dampened risk sentiment among investors. Data shows US non-farm payrolls increased by 467,000 jobs last month, compared with a pre-report estimate of 150,000 jobs.

After January’s surprisingly strong jobs report, let’s focus on consumer inflation in the coming week and what this could mean for the Federal Reserve’s plan to raise interest rates.

Daily April Comex Gold

daily swing chart technical analysis

The main trend is up as per the daily swing chart. The main trend turned in the first session when buyers pulled out a previous major top at $1812.00. A trade through $1788.50 would turn the main trend down.

The main range is $1682.40 to $1882.50. Its retracement zone is support from $1782.50 to $1758.80. The upper zone of this zone closed the sale on January 28 at $1780.60.

The short-term range is $1882.50 to $1755.40. Its retracement area is with resistance at $1819.00 to $1833.90.

The new nominal range is $1856.70 to $1780.60. Its 50% level at 1818.70 is another potential upside target. It forms a resistance cluster with $1819.00.

short term outlook

With the exception of six days from mid-January to the end, April COMEX gold has been range-bound for over a month with support at $1782.50 – $1758.80 and resistance from $1819.00 to $1833.90.

However, the chart pattern inside the $1782.50 to $1819.00 level is indicating that an upside bias is likely to develop. Friday’s price action was impressive, especially since the trend changed. Nevertheless, buyers still need to pull out $1833.90 with confidence to trigger a potential upward move.

The longer the market remains in the trading range, the greater is the expected size of the breakout.

Nation World News Desk
Nation World News Desk
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