Gold Price Futures (GC) Technical Analysis – February 21, 2019 Forecast

Gold futures are trading lower on Thursday amid concerns that a strengthening U.S. economy and labor market could lead to at least one rate hike by the U.S. Federal Reserve later in the year. Rising U.S. Treasury yields are also a concern for gold investors since this tends to make the U.S. Dollar a more attractive investment, dampening demand for dollar-denominated gold.

At 12:26 GMT, April Comex gold futures are trading $1338.50, down $9.40 or -0.70%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through $1349.80 will signal a resumption of the uptrend. The main trend will change to down on a trade through $1304.70.

The minor trend is also up. However, a new minor top has formed at $1349.80.

The short-term range is $1304.70 to $1349.80. Its retracement zone at $1327.30 to $1321.90 is the primary downside target. Since the main trend is up, buyers could come in on a test of this zone.

Daily Technical Forecast

Based on the early price action, the direction of the April Comex gold market on Thursday is likely to be determined by trader reaction to the step uptrending Gann angle at $1336.70.

Bullish Scenario

A sustained move over $1336.70 will indicate the return of buyers. The first upside target is a minor 50% level at $1342.20. This is followed by yesterday’s high at $1349.80.

Taking out $1349.80 could trigger an acceleration to the upside with the next target the May 11, 2018 main top at $1356.80.

Bearish Scenario

A sustained move under $1336.70 will signal the presence of sellers. The daily chart is wide open to the downside under this angle so look for an acceleration to the downside with the next target the short-term 50% level at $1327.30. Since the main trend is up, look for buyers on the first test of this level.

If $1327.30 fails as support then look for the selling to extend into the short-term Fibonacci level at $1321.90, followed by an uptrending Gann angle at $1320.70.