Gold Price Futures (GC) Technical Analysis – Challenging Major Retracement Zone at $1306.60 to $1291.50

April Comex Gold futures hit their lowest level since December 29 earlier today while turning lower for the year after comments from Federal Reserve Chairman Jerome Powell this week solidified expectations for further rate increases. Powell’s comments drove up U.S. Treasury yields which made the dollar a more desirable asset than dollar-denominated gold.

Daily Technical Analysis

The main trend is down according to the daily swing chart. The downtrend was reaffirmed when sellers took out the February 9 bottom at $1309.00. The initial sell-off stopped at $1303.60, inside a major retracement zone.

The main range is $1242.70 to $1370.50. Its retracement zone at $1306.60 to $1291.50 is currently being tested.

Daily Technical Forecast

Based on the current price action, the direction of the gold market into the close is likely to be determined by trader reaction to the major 50% level at $1306.60.

A sustained move under $1306.60 this afternoon will signal the presence of sellers. This could drive the gold market into a steep downtrending Gann angle at $1300.40. It is followed by an uptrending Gann angle at $1295.70.

Crossing to the weak side of these angles will indicate the selling is getting stronger. This could drive the market into the Fibonacci level at $1291.50. This price is the trigger point for an acceleration to the downside.

A sustained move over $1306.60 will signal the return of buyers into the close. Hedge fund buying is possible if the stock market continues to sell-off hard.