Gold Price Futures (GC) Technical Analysis – April 9, 2019 Forecast

Gold prices are moving higher on Tuesday, but the market is still trading inside its previous range. This suggests investor indecision and impending volatility. There are numerous reasons for this week’s strength including short-covering ahead of Wednesday’s Fed minutes and worries about a slowing U.S. economy, however, the weaker U.S. Dollar is probably the best reason. The early price action indicates this theme should continue throughout the session.

At 11:47 GMT, June Comex gold is trading $1305.90, up $4.00 or +0.31%.

Daily Technical Analysis

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

The minor trend is up according to the minor swing chart. This is determining the upside bias.

On the downside, the major support is a retracement zone at $1285.50 to $1268.90. 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. The lower or 50% level of this range stopped the buying on Monday.

The main range is $1356.00 to $1284.90. Its retracement zone at $1320.50 to $1328.80 is a second upside target area.

Daily Technical Forecast

Based on the early price action and the current price at $1305.90, the direction of the June Comex gold futures contract on Tuesday is likely to be determined by trader reaction to the 50% level at $1307.90.

Bullish Scenario

A sustained move over $1305.90 will indicate the presence of buyers. This should lead to a quick test of a downtrending Gann angle at $1308.80. Overtaking this angle could drive the market into the Fibonacci level at $1313.30.

The Fib level at $1313.30 is also a trigger point for an acceleration to the upside with the next target a resistance cluster at $1319.80 to $1320.50.

Bearish Scenario

A failure to overcome $1307.90 will signal the presence of sellers. If this move creates enough upside momentum then look for the rally to possibly extend into an uptrending Gann angle at $1296.80. If this fails then watch for a break into the next uptrending Gann angle at $1290.90.

Basically, the upside bias could strengthen on a sustained move over $1308.80. A downside bias could develop on a sustained move under $1307.90.