February Comex Gold futures are trading higher early in the session on Friday. A weaker U.S. Dollar is the catalyst behind the rally.
If the U.S. Consumer Inflation report comes in below the 0.10% estimate then gold should spike higher.
Daily Technical Analysis
The main trend is up according to the daily swing chart. There is room to run to the upside over the near-term since the next main top is $1365.80.
Due to the prolonged move up in terms of price and time, the market is vulnerable to a closing price reversal top.
The main range is $1365.80 to $1238.30. Its retracement zone at $1317.10 to $1302.10 is support.
Daily Technical Forecast
The early price action indicates that the key support today is a steep uptrending Gann angle at $1322.30.
A sustained move over $1322.30 will indicate the presence of buyers. This could generate the upside momentum needed to test the next downtrending Gann angle at $1344.00. This is the last potential resistance angle before the $1365.80 main top.
The uptrending Gann angle at $1322.30 forms a support cluster with a downtrending Gann angle at the same price. This is why the market stopped at $1322.10 today.
If $1322.30 is taken out with heavy selling pressure then look for a quick break into the Fibonacci level at $1317.10. This is the trigger point for an acceleration into the 50% level at $1302.10.
This article was originally posted on FX Empire
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