Gold futures are under pressure Monday shortly before the U.S. opening. The market is being pressured by a stronger U.S. Dollar as the easing of tensions over the Korean peninsula is boosting appetite for higher risk assets.
At 1141 GMT, June Comex Gold is trading $1314.20, down $9.20 or -0.70%.
Daily Technical Analysis
The main trend is down according to the daily swing chart. The current downside momentum suggests the March 20 main bottom at $1312.40 is the next likely downside target. This is followed by the March 1 main bottom at 1309.30. Taking out both bottoms will indicate the selling is getting stronger. This could also trigger the start of a steep move to the downside.
The main range is $1247.20 to $1375.50. Its retracement zone at $1311.40 to $1296.20 is the next major downside target.
The new short-term range is $1369.40 to $1311.40. Should there be a surprise short-covering rally then its retracement zone at $1341.90 to $1348.40 is likely to become the primary upside target.
Daily Technical Forecast
Based on the current price at $1314.50, the direction of the gold market today is likely to be determined by trader reaction to a steep downtrending Gann angle at $1317.40.
A sustained move under $1317.40 will indicate the presence of sellers. This could generate the downside momentum needed to challenge a series of potential support levels at $1312.40, $1311.40 and $1309.30.
The bottom at $1309.30 is a potential trigger point for an acceleration to the downside with $1296.20 the next major downside target.
A sustained move over $1317.40 will signal the presence of buyers. We could see the start of a short-covering rally on a sustained move over this Gann angle.
If this move starts to gain traction then the next major potential upside target becomes $1341.90.