Comex Gold Futures (GC) Technical Analysis – March 24, 2017 Forecast

June Comex Gold futures traded higher most of the session on Friday as investors weighed the outcome of the vote to repeal Obamacare and replace it with the Republican plan called the American Health Care Act. Investors may be saying that they have mixed feelings over the outcome. The price action also suggests similar feelings.

Basically, investors aren’t sure how to play the outcome of the report. This is because it’s a two-sided issue. The key question that investors can’t answer is what will happen to Trump’s ability to reform taxes, increase fiscal spending and reduce regulations.

Technical Analysis

The main trend is down according to the daily swing chart. However, momentum is trending higher. Taking out $1256.40 will turn the main trend to up. This could create the upside momentum needed to challenge $1268.10.

The main range is $1268.10 to $1198.00. Gold is trading over its retracement zone at $1241.40 to $1233.10 which suggests an upside bias. If there is a collapse in prices then look for a potential break into the next retracement zone at $1227.20 to $1220.30.

Forecast

Breaking News:  The American Health Care Act has been pulled from the floor of the House of Representatives for a second time. Now the debate begins. Does this put Trump in a bad position? Does this mean his power is weaker? What does this mean for his other policies?

The price action in the stock market late in the day was mixed. Going into the vote, stocks were breaking. This was emotionally-based selling. After the vote was cancelled, stocks started to recover. This may be an indication of relief.