Gold Price Futures (GC) Technical Analysis – Aggressive Buyers May Be Defending $1272.70 to $1267.30

Based on Tuesday’s price action and the current price at $1274.40, the direction of the gold market into the late session close is likely to be determined by trader reaction to the 50% level at $1272.70.
James Hyerczyk
Comex Gold

Gold prices are trading lower late Tuesday after hitting a two-week low earlier in the session. However, the market is attempting to claw back most of its earlier losses into the close. Throughout the session the market continued to straddle a major 50% level, suggesting longer-term investors may be recognizing value. Additionally, aggressive counter-trend traders may be trying to defend the low for the year at $1267.30 in an effort to prevent a steep sell-off into $1253.00.

At 19:54 GMT, June Comex gold futures are trading $1274.40, down $2.90 or -0.23%. This is up from a low of $1269.00.

Gold is attempting to rebound late in the session despite firmer U.S. Treasury yields and increased demand for higher risk assets. A volatile two-sided swing in the U.S. Dollar index may be behind gold’s intraday comeback rally. The index was whipped around by an intraday rally in the Euro.

Daily June Comex Gold

Daily Technical Analysis

The main trend is up according to the daily swing chart, however, momentum has been trending lower since the formation of the closing price reversal top at $1304.20 on May 14.

The main trend will change to down on a move through the last swing bottom at $1267.30.

Gold is currently testing a major 50% to 61.8% retracement zone at $1272.70 to $1253.00. This zone is controlling the longer-term direction of the market.

Daily Technical Forecast

Based on Tuesday’s price action and the current price at $1274.40, the direction of the gold market into the late session close is likely to be determined by trader reaction to the 50% level at $1272.70.

Bullish Scenario

A sustained move over $1272.70 will indicate the presence of buyers. If this creates enough upside momentum then look for the rally to possibly extend into the steep downtrending Gann angle at $1284.20.

Bearish Scenario

A sustained move under $1272.70 will signal the presence of sellers. This could lead to a retest of the intraday low at $1269.00. If this fails then look for the selling to extend into the main bottom at $1267.30.

If $1267.30 is taken out with heavy selling volume then look for a potential acceleration into the major Fibonacci level at $1253.00.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.