Gold Price Futures (GC) Technical Analysis – Holding $1711.70 Sets Up Rally into $1739.10 – $1744.30

Gold futures are trading at their high of the session late Wednesday as Treasury yields eased after subdued consumer inflation data and an adequate 10-year Treasury bond auction. The drop in yields also drove the U.S. Dollar lower, making dollar-denominated gold more attractive to foreign buyers.

At 20:28 GMT, April Comex gold futures are trading $1723.70, up $6.80 or +0.40%.

10-year U.S. Treasury yields dropped after data showed U.S. consumer prices increased in February, though underlying inflation remained tepid.

U.S. Treasury yields were also pressured after key 10-year Treasury auction data showed enough demand to stave off fears of investors worried about a possible slump in demand for the government’s debt and a recent rapid rise in rates.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through $1673.30 will signal a resumption of the downtrend. The main trend will change to up on a trade through $1815.20.

The minor trend is also down. A trade through $1739.10 will change the minor trend to up. This will also shift momentum to the upside.

The market is trying to build support on the strong side of the long-term Fibonacci level at $1711.70.

The short-term range is $1815.20 to $1673.30. Its 50% level at $1744.30 is the first upside target.

Short-Term Outlook

If April Comex gold futures can hold the Fibonacci level at $1711.70 then look for a surge into the minor top at $1739.10, followed closely by the short-term 50% level at $1744.30.

Taking out $1744.30 with conviction could trigger an acceleration into the long-term 50% level at $1787.30.