Comex Gold Futures (GC) Technical Analysis – April 18, 2017 Forecast

June Comex Gold futures are trading lower as investors continue to react to a rebound in the U.S. Dollar, fueled by a sharp rise in U.S. Treasury yields following test of their lowest level since mid-November. Greater demand for higher yielding assets like stocks also encouraged gold speculators to pare their long positions.

Technical Analysis

The main trend is up according to the daily swing chart. On Monday, the gold market bent, but didn’t break so the intraday sell-off had no effect on the trend. A move through $1283.10 will make $1297.40 a new minor top and signal that momentum may be getting ready to shift to the downside.

A trade through $12974.0 will signal a resumption of the uptrend.

The new short-term range is $1248.20 to $1297.40. Its retracement zone at $1272.80 to $1267.00 is the primary downside target. Since the main trend is up, buyers are likely to show up on a trade into this zone.

Forecast

Based on the current price at $1286.90 and the earlier price action, the direction of the market today will likely be determined by trader reaction to the uptrending angles at $1288.20 and $1285.50.

Overcoming and sustaining the rally over $1288.20 will signal the presence of buyers. This could create enough upside momentum to trigger a retest of $1297.40.

A sustained move under $1285.50 will signal that the buying is getting weaker and perhaps the selling is getting stronger.

The daily chart indicates there is a lot of room under $1285.50 so start preparing for an acceleration to the downside.

The first major target is a 50% level at $1272.80. This is followed up an uptrending angle at $1268.20 and a Fibonacci level at $1267.00.

Look for a bullish tone to develop on a sustained move over $1288.20 and a bearish tone on a sustained move under $1285.50.