Gold Price Futures (GC) Technical Analysis – February 6, 2019 Forecast

Gold futures are trading lower at the mid-session, but inside yesterday’s trading range. The price action suggests investor indecision and impending volatility. The stronger U.S. Dollar is applying the downside pressure, while worries about another government shutdown later this month is helping to generate some safe-haven buying.

At 16:32 GMT, April Comex gold futures are trading $1316.10, down $3.10 or -0.23%.

Daily Technical Analysis

The main trend is up according to the daily swing chart, however, we are starting to see signs of a shift in momentum to the downside. A trade through $1331.10 will reaffirm the uptrend. A move through $1312.70 will indicate the selling pressure is getting stronger.

The major retracement zone is $1319.70 to $1293.60. This zone is controlling the longer-term direction of the gold market.

The short-term range is $1331.10 to $1312.70. Its 50% level or pivot is $1321.90. Trading below this level is generating the downside pressure.

The main range is $1281.50 to $1331.10. If the selling pressure continues then look for the move to extend into its retracement zone at $1306.30 to $1300.40.

Daily Technical Forecast

Based on the early price action, the direction of the April Comex gold futures market the rest of the session is likely to be determined by trader reaction to a pair of Gann angles at $1317.50 and $1315.10.

Bullish Scenario

Overtaking and sustaining a rally over $1317.50 will indicate the presence of buyers. This could generate a labored rally with targets at $1319.70, $1321.90 and a downtrending Gann angle at $1323.10.

The Gann angle at $1323.10 is the trigger point for an acceleration to the upside with the next target angle coming in at $1327.10. This is the last potential resistance angle before the $1331.10 main top.

Bearish Scenario

A sustained move under the Gann angle at $1315.10 will signal increased selling pressure. This could lead to a test of $1312.70. The daily chart is wide open to the downside under this level with the next target coming in at $1306.30.

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