Gold Price Futures (GC) Technical Analysis – April 5, 2019 Forecast
Gold futures are trading lower after posting a two-sided trade earlier in the session. Volume is light ahead of the release of the U.S. Non-Farm Payrolls report at 12:30 GMT. Today’s early inside move indicates investor indecision and impending volatility. This can be expected due to the importance of the jobs report.
At 11:50 GMT, June Comex gold is trading $1291.90, down $2.40 or -0.19%.
Gold futures are being pressured by a stronger U.S. Dollar, rising interest rates and increasing appetite for higher risk assets. As far as the Non-Farm Payrolls report is concerned. Here’s what investors are expecting. The Non-Farm Employment Change is expected to show the economy added 172,000 jobs in March. The Unemployment Rate is expected to remain at 3.8%. Average Hourly Earnings are expected to have risen by 0.3% for the month.
An overall bullish report should drive gold prices lower.
Daily Technical Analysis
The main trend is down according to the daily swing chart. A trade through $1284.90 will indicate the selling is getting stronger. The main trend will change to up on a move through $1330.80, but this isn’t likely to occur. However, investors should watch for a closing price reversal bottom.
The minor trend is also down. A trade through $1299.00 will change the minor trend to up. This should shift momentum to the upside. A move through $1284.90 will signal a resumption of the minor downtrend.
On the downside, the nearest support is a pair of retracement levels at $1289.90 and $1285.50.
On the upside is a series of resistance levels at $1302.50, $1307.90 and $1313.30.
Daily Technical Forecast
Based on the early price action, the direction of the June Comex gold market on Friday is likely to be determined by trader reaction to the downtrending Gann angle at $1294.80.
A sustained move over $1294.80 will indicate the presence of buyers. If this generates enough momentum then look for buyers to go after $1299.00 then $1302.50.
Taking out $1302.50 could create the momentum needed to challenge $1307.90. Prices should continue to accelerate to the upside with the next target a resistance cluster at $1312.80 to $1313.30.
A sustained move under $1294.80 will signal the presence of sellers. The first target is $1289.90, followed by a potential support cluster at $1285.50 to $1284.90.
Watch the price action and read the order flow at $1284.90 today because if it fails, we could see an acceleration to the downside with $1268.90 the next major downside target.