The past four sessions have been challenging for gold. Prices of December futures have fallen from multi-year highs above 1550.0 to beneath 1500.0. Given the rekindled positive sentiment toward U.S. stocks, it appears that risk is back on for the time being.

Throughout the summer season, concerns over the U.S./China trade war, FED quantitative easing, and the looming 2020 U.S. election have driven bullion north by more than $300 per ounce. However, the prevailing bullish outlook for GOLD is currently under fire. Are we in for a September correction?

December Gold Futures: Technical Outlook

In a Weekend Update from last Saturday, I broke down the intermediate-term technical roadmap for December gold futures. If you missed it, feel free to check it out here. As of now, the key support level highlighted in the article is coming into view.

Aside from the short-term daily technicals, there are two levels on my radar:

• 2-Way Catalyst: Psyche Level, 1500.0
• Support(1): 38% Retracement of May/August Bull Run, 1458.8

Bottom Line: While the 38% May/August Retracement is still about $40 south of current pricing, it is worth looking at. This is strong trade location with the prevailing bullish trend and a potential opportunity.

As long as the Double Top (1565.0-1566.2) remains the high water mark for December gold, I will have buy orders ready to go from 1461.1. With an initial stop loss at 1448.1, this trade yields 130 ticks profit on a standard 1:1 risk vs reward ratio. This is a position trade, so dynamic management strategies may be needed. If it goes live in the coming sessions, be sure to check back for details on how to optimize the performance of the open position.