Comex Gold Futures (GC) Technical Analysis – March 27, 2017 Forecast

June Comex Gold futures are trading higher shortly before the regular session opening. Traders are reacting to lower Treasury yields which are making the U.S. Dollar a less attractive investment. The catalyst behind the move is President Trump’s inability to pass health care reform last week which is raising questions over this ability to deliver on his campaign pledges to reform tax laws and rebuild the country’s infrastructure.

Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed when the gold market crossed the previous main top at $1256.40 earlier in the session. This price is new minor support.

A trade through $1243.70 will turn the main trend to down.

If the upside momentum continues then look for a further rally into the next main top at $1268.10. This could be the trigger point for an acceleration to the upside since the next major target is the July 6, 2016 top at $1347.40.

The main range is $1347.40 to $1129.80. Its retracement zone is $1260.70 to $1291.50. This zone is the primary upside target and is currently being tested. Trader reaction to this zone will determine the longer-term trend of the market.

Forecast

Based on the current price $1261.20, the direction of the gold market today will be determined by trader reaction to the 50% level at $1260.70.

A sustained move over $1260.70 will indicate the buying is getting stronger with the next target $1268.10, followed by $1291.50.

A sustained move under $1260.70 will signal the presence of selling. This could drive gold back to $1243.70 then an uptrending angle at $1242.00.

If $1242.00 fails as support then the trend will change to down. This could drive the market into the next support at $1220.00.

Watch the price action and read the order flow at $1260.70 all session. This will tell us if the buying or selling is getting stronger.