Gold Price Futures (GC) Technical Analysis – Closed in Position to Take Out $1345.00 Main Top

Gold futures finished higher on Tuesday mostly in reaction to weakness in the U.S. Dollar, which fell to a fresh three-year low against a basket of major currencies. Increased demand for higher risk assets, driven by strong earnings and the end of the three-day government shutdown, may have limited gains.

April Comex Gold futures settled at $1341.70, up $4.80 or +0.36%.

The main trend is up according to the daily swing chart. A trade through $1345.00 will signal a resumption of the uptrend. If this move generates enough upside momentum then we could see an eventual test of the September 8 main top at $1365.80.

A new main bottom was confirmed on Tuesday at $1324.30. A trade through this bottom will change the main trend to down.

The main range is $1365.80 to $1238.30. Its retracement zone at $1317.10 to $1302.10. This zone should be considered support. It is controlling the longer-term direction of the gold market.

If there is a change in trend to down, the retracement zone is likely to stop the first wave of selling pressure.

The market will weaken further if $1302.10 fails as support. If this creates enough downside momentum then look for the selling to extend into the major 50% to 61.8% zone at $1290.20 to $1272.30.

If the volume is strong enough, we could see an acceleration to the upside on a breakout over $1345.00.