Gold Price Futures (GC) Technical Analysis – April 8, 2019 Forecast

Gold futures are trading higher shortly before the cash market opening on Monday. The rally is being fueled by a weaker U.S. Dollar, which is driving up demand for dollar-denominated gold. Gold is also being underpinned by lower demand for risk. The catalyst behind the price action is concern over a slowing global economy. We could also be seeing position-squaring ahead of the release of the minutes of the last Fed meeting on Wednesday.

At 11:04 GMT, June Comex gold is trading $1301.60, up $6.00 or +0.46%.

Daily Technical Analysis

The main trend is down according to the daily swing chart, however, momentum is trending higher. A trade through $1284.90 will signal a resumption of the downtrend. A move through $1330.80 will change the main trend to up.

The minor trend is up. It changed to up earlier in the session. This move also shifted momentum to the upside. The minor trend will change to down on a move through $1284.90.

The major range is $1215.00 to $1356.00. Its retracement zone at $1285.50 to $1268.90 is support. This zone stopped the selling on April 4 at $1284.90.

The short-term range is $1330.80 to $1284.90. Its retracement zone at $1307.90 to $1313.30 is the primary upside target. Since the main trend is down, look for sellers on the first test of this zone.

Daily Technical Forecast

If the upside momentum continues then look for a possible drive into the short-term 50% level at $1307.90. This is followed by a downtrending Gann angle at $1310.80, followed by a Fibonacci level at $1313.30. Since the trend is down, any one of these prices is capable of stopping the rally.

If sellers return to stop the rally then look for a potential break into a downtrending Gann angle at $1290.80. Crossing to the weak side of this angle will put the market in a bearish position.