Gold Price Futures (GC) Technical Analysis – April 5, 2018 Forecast

June Comex Gold futures are trading lower shortly before the regular session opening on Thursday. A stronger U.S. Dollar and increased demand for higher risk assets is putting pressure on the market. These two factors are likely to continue to influence the price action throughout the session.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. However, momentum is trending lower. A trade through $1325.40 will change the main trend to down. If this move attracts enough sellers then look for a possible move into the next main bottom at $1312.40.

Momentum will shift to the upside on a trade through $1352.50. The uptrend will resume on a move through $1362.60.

The short-term range is $1312.40 to $1362.60. Its retracement zone at $1337.50 to $1331.60 is currently being tested. Trader reaction to this zone will likely determine the direction of the market the rest of the session.

On the upside, the retracement zone at $1342.40 to $1350.20 is the resistance.

On the downside, the first major support is the 50% level at $1311.40.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the gold market is likely to be determined by trader reaction to the Fibonacci level at $1331.60.

Holding above $1331.60 will indicate that buyers are coming in to defend the trend. This could drive the market into the short-term 50% level at $1337.50. This is another trigger point for an acceleration into $1342.40, followed by $1350.20.

A sustained move under $1331.50 will signal the presence of sellers. This could lead to a quick break into the main bottom at $1325.40.

Taking out $1325.40 will change to the main trend to down. This could trigger the start of a steep sell-off into a price cluster formed by $1312.40, $1311.40 and $1309.30.