Gold Price Futures (GC) Technical Analysis – Bullish Over $1349.80, Bearish Under $1344.90

April Comex Gold futures are trading higher on Friday after a steep sell-off on Thursday in reaction to a massive recovery in the U.S. Dollar. The Greenback rose from a three-year low after President Trump said he wanted a “stronger dollar”.
The market is also in a positon to close nearly 2 percent higher for the week.

Daily Swing Chart Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed on Thursday when buyers drove gold through the September 8 main top at $1370.00. The market only reached $1370.50 before sellers came in to stop the rally.

A trade through $1370.50 will signal a resumption of the uptrend. This could create enough upside momentum to take out the September 6, 2016 main top at $1373.30.

A surge through $1373.30 could lead to a test of the August 18, 2016 top at $1382.20. This is a possible trigger point for an acceleration into the August 2, 2016 main top at $1396.20.

The main trend will change to down on a move through $1329.10.

Daily Swing Chart Forecast

Based on the early price action, the direction of the gold market today is likely to be determined by trader reaction to the short-term retracement zone at $1349.80 to $1344.90.

A sustained move over $1349.80 will indicate the presence of buyers. This could create the upside momentum needed to challenge or even take out the main top at $1370.50.

A sustained move under $1344.90 will signal the presence of sellers. The daily chart shows there is room to break to $1329.10, followed closely by $1321.40.