Key Support Level For December Gold - Forex News by FX Leaders
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Key Support Level For December Gold

Posted Wednesday, August 21, 2019 by
Shain Vernier • 1 min read

With the FOMC Minutes a little over an hour away, it is a good time to take a look at today’s action in December gold futures. Prices are holding steady above $1514.0, well off intrasession lows at $1506.5. Going into the key economic event, let’s break down a critical technical level on the daily time frame.

December Gold Futures: Technical Outlook

One of the leading financial stories of the summer has been the bull market in bullion. The GOLD bugs have flexed, driving values north of the $1500.0 psyche level for the first time since April of 2013. Subsequently, December gold futures have been on a tear since August 1st.

December Gold Futures (GC), Daily Chart
December Gold Futures (GC), Daily Chart

At the moment, gold is in a holding pattern as the FOMC Minutes release approaches. For the remainder of the session, there is one technical level to be especially aware of:

  • Support(1): 38% Current Wave Retracement, 1494.9

Bottom Line: Today’s FOMC Minutes release will spike participation in the bullion markets. If we see December gold futures sell-off, going long from the 38% Fibonacci level is a solid way to join the prevailing bullish trend.

Until elected, I will have buy orders in December gold from 1495.7. With an initial stop at 1492.7, this trade produces a fast 30 ticks on a bounce from support.

Given the timing of this trade, it is high risk. Prudent leverage and stop-loss placement are advised, as well as aggressive position management. If the trade goes positive by a fast 20 ticks, either lock in profits or move your stop to breakeven!

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About the author

Shain Vernier // US Analyst
Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.
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