Gold Price Futures (GC) Technical Analysis – April 12, 2018 Forecast

June Comex Gold futures are trading lower on Thursday after posting a strong rally the previous session. The market is being driven down by a stronger U.S. Dollar and increased demand for risky assets. The catalysts behind the rally are the hawkish Fed minutes released on Wednesday and an easing of tensions in the Middle East.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The trend turned up on Wednesday when buyers took out the previous main top at $1352.50. A trade through $1322.60 will change the main trend to down.

The main range is $1375.50 to $1309.30. Its retracement zone is $1342.40 to $1350.20. This zone is controlling the longer-term direction of the market.

The short-term range is $1322.60 to $1369.40. Its retracement zone at $1346.00 to $1340.50 is the first downside target.

The short-term zone is straddling the lower or Fibonacci level of the long-term zone, making $1342.40 to $1340.50 a potential support cluster. Since the main trend is up, buyers are likely to come in on a test of this zone.

Holding above $1350.20 will give the gold market an upside bias. A move through $1340.50 will shift momentum and the bias to the downside.

Daily Swing Chart Technical Forecast

Based on the earlier price action, the direction of the gold market the rest of the session is likely to be determined by trader reaction to the long-term Fibonacci level at $1350.20.

A sustained move over $1350.20 will indicate the return of buyers. The rally will pick up steam if buyers can turn the market higher for the session.

Upside targets include yesterday’s high at $1369.40, the February 16 top at $1369.60 and the January 25 top at $1375.50.

A sustained move under $1350.20 will signal the presence of sellers. This could create a labored break into $1346.00, $1342.40 and $1340.50.

The daily chart opens up to the downside under $1340.50. This price is a potential trigger point for an acceleration into the closest main bottom at $1322.60.