Gold Price Futures (GC) Technical Analysis – $1306.60 to $1291.50 Primary Downside Targets

Gold futures are trading steady on Wednesday after tumbling more than 1 percent in the previous session. Yesterday’s sell-off was fueled by hawkish comments from Federal Reserve Chairman Jerome Powell which suggested the possibility of four U.S. interest rate increases this year and next.

At 1632 GMT, April Comex Gold futures are trading $1320.30, up $1.70 or +0.13%.

Gold is trading inside yesterday’s range which indicates investor indecision and impending volatility. It is being pressured by rising U.S. Treasury yields and a stronger U.S. Dollar while being underpinned by hedge buying due to increased demand for safe-haven assets.

 

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through $1314.40 will indicate the selling is getting stronger. A move through $1309.00 will reaffirm the downtrend.

The primary downside target is the major 50% to 61.8% retracement zone at $1306.60 to $1291.50.

On the upside, the resistance is a short-term retracement zone at $1330.20 to $1336.70.

Daily Technical Forecast

Based on the current price action, the direction of the gold market into the close is likely to be determined by trader reaction to the uptrending Gann angles at $1315.50 and $1322.00.

A sustained move under $1315.50 will indicate the presence of sellers. Taking out $1314.40 will indicate the selling is getting stronger. This could fuel a break into $1309.00 and $1306.60.

Crossing to the weak side of a steep downtrending angle at $1308.40 and taking out the major 50% level at $1306.60 will signal that the selling is getting stronger. This could lead to an acceleration to the downside into the major Fibonacci level at $1291.50.

On the upside, overcoming and sustaining a rally over $1322.00 will signal the return of buyers. If the volume is strong enough, we could see a rally back to at least $1330.20.