Gold Price Futures (GC) Technical Analysis – February 25, 2019 Forecast

Gold futures are drifting lower, while posting an inside move on Monday. The price action suggests investor indecision. Traders are currently assessing the impact of President Trump’s decision to extend the deadline for potential tariffs against China on investor demand for risk, and future Fed monetary policy decisions.

The major concern for bullish gold traders is whether Trump’s decision means a deal to end the trade dispute is imminent. If so, this could reduce gold’s appeal as a safe-haven asset. Furthermore, it will likely dampen the Fed’s concerns over a weakening U.S. economy, which could lead to at least one rate hike later this year.

At 10:21 GMT, April Comex gold futures are trading $1331.90, down $0.90 or -0.07%.

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. A trade through $1304.70 will change the main trend to down.

The short-term range is $1304.70 to $1349.80. Its retracement zone at $1327.30 to $1321.90 has been providing support the last two sessions. Today, the market is trading on the strong side of this retracement zone, giving the market a slight upside bias.

Daily Technical Forecast

Based on the early price action, the direction of the April Comex gold market on Monday is likely to be determined by trader reaction to the uptrending Gann angle at $1328.70.

Bullish Scenario

A sustained move over $1328.70 will indicate the presence of buyers. If this creates enough upside momentum then look for a drive into a downtrending Gann angle at $1336.90. Sellers could come in on the first test of this angle. However, it’s also the trigger point for an acceleration to the upside with the next target last week’s high at $1349.80.

Bearish Scenario

A sustained move under $1328.70 will signal the presence of sellers. This should lead to a labored break with potential targets the short-term 50% level at $1327.30, an uptrending Gann angle at $1323.50 and the short-term Fibonacci level at $1321.90. This is a potential trigger point for an acceleration into another support angle at $1316.70.

Gold could also be rangebound today because many traders have taken to the sidelines ahead of the three days of testimony by Fed Chair Powell on Tuesday, Wednesday and Thursday. His remarks to a Congressional committee could be a market moving event.