Gold Price Futures (GC) Technical Analysis – $1790.80 Potential Trigger Point for Acceleration into $1822.10.
The direction of the February Comex gold futures contract on Wednesday is likely to be determined by trader reaction to $1790.80.
Gold futures are inching higher early Friday with the price action being driven by a dip in Treasury yields and a weaker U.S. Dollar. Lower yields reduce gold’s opportunity cost while a weaker dollar decreases bullion’s cost for holders of other currencies.
Some fundamental traders are saying gold is being underpinned by political uncertainty after U.S. President Joe Biden threatened to impose “strong economic and other measures” on Russia if it invades Ukraine.
Others are saying the latest news surrounding the new omicron COVID variant is providing the support. Pfizer CEO Albert Bourla on Tuesday said the omicron variant appears to be milder than previous strains, but also seems to spread faster and could lead to more mutations in the future.
Meanwhile, South African scientists said that omicron significantly reduces the antibody protection generated by Pfizer and BioNTech’s vaccine, according to a small preliminary study.
Prices are likely to remain in a tight trading range until there is definitive data from science regarding the virus. Once that is attained, traders can assess the potential impact of the variant on the economy.
The direction of the February Comex gold futures contract on Wednesday is likely to be determined by trader reaction to $1790.80.
Gold futures are inching higher early Friday with the price action being driven by a dip in Treasury yields and a weaker U.S. Dollar. Lower yields reduce gold’s opportunity cost while a weaker dollar decreases bullion’s cost for holders of other currencies.
Some fundamental traders are saying gold is being underpinned by political uncertainty after U.S. President Joe Biden threatened to impose “strong economic and other measures” on Russia if it invades Ukraine.
Others are saying the latest news surrounding the new omicron COVID variant is providing the support. Pfizer CEO Albert Bourla on Tuesday said the omicron variant appears to be milder than previous strains, but also seems to spread faster and could lead to more mutations in the future.
Meanwhile, South African scientists said that omicron significantly reduces the antibody protection generated by Pfizer and BioNTech’s vaccine, according to a small preliminary study.
Prices are likely to remain in a tight trading range until there is definitive data from science regarding the virus. Once that is attained, traders can assess the potential impact of the variant on the economy.