Comex Gold Futures (GC) Technical Analysis – April 29, 2016 Forecast

June Comex Gold futures hit a seven-week high on Friday, putting it in a position to make a new high for the year on a trade through the March 11 top at $1287.80. Traders reacted to another drop in the U.S. Dollar. It fell in reaction to a surge in the Euro and a rally to an 18-month high by the Japanese Yen.

Technically, the main trend is up according to the daily swing. A trade through $1287.80 will reaffirm the uptrend while solidifying $1225.40 as the new main bottom.

The daily chart indicates that gold could accelerate to the upside if the breakout through $1287.80 is accompanied by above average volume. The next upside target over this level is the January 22, 2015 main top at $1309.00. This is followed by the August 14, 2014 top at $1326.40 and the July 10, 2014 top at $1350.20.

A break back under the angle at $1279.30 will indicate the selling is greater than the buying at current price levels. If traders decide to book profits, we could see a pullback into the next angle at $1270.80.

Conditions will turn a little more serious if $1270.80 fails as support since the next major support under this level is another angle at $1253.80.

Based on the current price at $1280.30, the direction of the market into the close today will likely be determined by trader reaction to $1279.30. Look for a downside bias on a sustained move under $1279.30 and an upside bias on a sustained move over this level with another acceleration to the upside likely if $1287.80 is taken out with conviction.