Gold Price Futures (GC) Technical Analysis – Dovish Fed Minutes Could Trigger Spike into $1356.80

Gold futures are trading higher at the mid-session and ahead of the release of the U.S. Federal Reserve Monetary Policy Meeting Minutes at 19:00 GMT. The market is being supported by a weaker U.S. Dollar, but a flip to the upside by Treasury yields is helping to limit gains. Dovish Fed minutes could spike gold prices even higher.

At 1609 GMT, April Comex gold is trading $1348.30, up $3.50 or +0.26%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed earlier today. A trade through $1304.70 will change the main trend to down. However, this seems unlikely. Due to the steep rally, the market is in a position to post closing price reversal top.

Daily Technical Forecast

The market is currently trading in between support and resistance, but momentum is to the upside.

If buyers continue to exert upside pressure then look for the rally to possibly extend into the May 11 top at $1356.80. Look for sellers on the first test of this level. However, overtaking it could trigger another acceleration to the upside with the next target angle coming in at $1370.80.

If sellers take control and the upside momentum slows down then look for a possible pullback into a support cluster at $1337.80 to $1336.80. Since the main trend is up, buyers could show up on a test of this area.

If $1336.80 fails as support then look for the selling to extend into the steep uptrending Gann angle at $1328.70.

Look for a volatility following the release of the Fed minutes, and be prepared for a two-sided trade. Don’t be surprised by a closing price reversal top.