Gold futures are fringing lower on volume as worries over a fresh US coronavirus relief package are keeping analysts on the side rocks. A dive in the US dollar against the major currencies malfunctioned to seek the attention of key buyers but it may have put to a stop to the further losses in the dollar-dominated asset. To keep the gold prices in a tight operating range is uncertainly ahead of the US Federal Reserve Monetary Policy while many analysts forecast and expect Federal Reserve to keep their policy unchanged.
In respect to the daily swing chart, the trend seems to be sluggish but the thrust seems to edge higher since the formulation of the closing price reversal bottom January 11. The trend is slightly up which points to the momentum swing upwards and dealing through $1878.10 will re-confirm the upward trend. The slightly smaller range has been between $1821.30 and $1878.10. Analysts are trying to garner support at the reassemble zone from $1849.70 to $1843.00. The stubby range is $1966.80 to $1821.30. Its reassemble zone at $1894.10 to $1911.20 is the main upside agenda. The major durable term support is the reassemble zone at $1787.30 to $1711.70. A deal through $1821.30 will invalidate the closing price reversal bottom and a sign of reassembling of the downturn. The significant trend will move upwards on a move through the nearest swing top at $1966.80.
A comforting move over $1849.70 will signify the presence of buyers. If it is sufficient to create an impulse then we could possibly expect the reassemble to further extend to $1878.10. This level could further activate an acceleration into $1894.10 to $1911.20. A sustained move below $1849.70 would indicate the presence of sellers while the first target being $1843.00. This level with significant selling could further lead to market into $1826.10 to $1821.30.
