Gold Price Futures (GC) Technical Analysis – Strengthens Over $1571.60, Weakens Under $1562.80

Gold futures are trading only slightly lower on Wednesday after clawing back most of its earlier losses. The market was pressured shortly after the opening as investor risk appetite picked up on reports of a decline in new coronavirus cases although concerns over its impact on the global economy persisted.

Gains are also being capped by upbeat comments from Federal Reserve Chairman Jerome Powell on Tuesday, record highs in the global equity markets and firmer Treasury yields.

At 13:02 GMT, April Comex gold is trading $1568.80, down $1.20 or -0.08%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through $1551.10 will signal a resumption of the downtrend. The main trend will change to up on a move through $1580.50.

The short-term range is $1542.80 to $1598.50. Its retracement zone at $1570.70 to $1564.40 is currently being tested.

The intermediate range is $1619.60 to $1542.80. Its retracement zone at $1581.20 to $1590.30 is resistance.

The main retracement zone support is $1539.10 to $1520.00.

Daily Technical Forecast

Based on the early price action and the current price at $1568.80, the direction of the April Comex gold market on Wednesday is likely to be determined by trader reaction to a pair of Gann angles at $1562.80 to $1571.60.

Bearish Scenario

A sustained move under $1562.80 will indicate the presence of sellers. This move could trigger an acceleration to the downside with the next target angle coming in at $1552.80. This is followed closely by a main bottom at $1551.10. This price is another trigger point for a steep break.

Bullish Scenario

A sustained move over $1571.60 will indicate the presence of buyers. This is a potential trigger point for an acceleration to the upside with the next targets a main top at $1580.50 and a 50% level at $1581.20.