Gold Price Futures (GC) Technical Analysis – April 6, 2018 Forecast

June Comex Gold futures are trading lower shortly before the regular session opening and the release of the March U.S. Non-Farm Payrolls report at 1230 GMT.

The market started the session with a rally amid weakness in the U.S. Dollar and U.S. stock indexes after President Trump announced he was looking into imposing another $100 billion in tariffs on China.

Gold started to lose value when the dollar turned higher for the session and stocks clawed back most of their earlier losses.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. The trend turned down earlier in the session when sellers took out $1325.40. The new main top is $1352.50.

If the move through $1325.40 gains traction then we could see an eventual move to the March 20 bottom at $1312.40, followed closely by the March 1 bottom at $1309.30.

The main range is $1312.40 to $1362.60. Its retracement zone is $1337.50 to $1331.60. Trading on the weak side of this zone is helping to give the market a downside bias.

On the upside, additional resistance comes in at $1342.40 to $1350.20.

On the downside, the major retracement zone at $1311.40 to $1296.20 is the primary downside target. This zone is controlling the longer-term direction of the market.

Daily Swing Chart Technical Forecast

Based on the early trade, the direction of the gold market today is likely to be determined by trader reaction to the former bottom at $1325.40.

Even though the main trend is down, recovering $1325.40 will indicate the return of buyers. This could lead to a labored rally with a series of retracement levels at $1331.60, $1337.50, $1342.40 and $1350.20 potential resistance levels.

Buyers would have to take out $1352.50 to turn the main trend to up.

A sustained move under $1325.40 will signal the presence of sellers. This could trigger an acceleration to the downside with three targets lined up at $1312.40, $1311.40 and $1309.30.

Look out to the downside if $1309.30 is taken out with conviction.