Gold Price Futures (GC) Technical Analysis – Increasing Downside Momentum Targets $1787.30 to $1784.60

Gold futures are trading lower on light volume, Rising Treasury yields are weighing on the market, while losses are being slowed by another surge in platinum prices and a weaker U.S. Dollar.

Platinum extended its rally to a near 6-1/2-year high on Tuesday as investors bet the autocatalyst would benefit from a likely pick up in global economic activity and a push for clean energy technology.

The U.S. Dollar is being pressured against a basket of major currencies because of a rise in the heavy-weighted Euro. The single-currency rose after a report showed Euro Zone gross domestic product fell less than initially estimated in the last quarter of 2020.

Treasury yields were higher as investors continued to watch for progress on President Joe Biden’s proposed $1.9 trillion stimulus package in Congress, as well as the coronavirus vaccine rollout in the U.S.

At 12:52 GMT, April Comex gold is trading $1809.80, down $9.10 or -0.50%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through $1784.60 will signal a resumption of the downtrend. The main trend will change to up on a move through $1856.60.

The minor range is $1784.60 to $1856.60. The market is currently trading on the weak side of its retracement zone at $1812.10 to $1820.60.

The short-term range is $1878.90 to $1784.60. Its retracement zone at $1831.80 to $1842.90 is resistance.

Daily Swing Chart Technical Forecast

The early price action indicate the direction of the market on Tuesday will be determined by trader reaction to $1812.10.

Bearish Scenario

A sustained move under $1812.10 will indicate the presence of sellers. If this move creates enough downside momentum then look for the selling to extend into $1787.30 to $1784.60.

Bullish Scenario

A sustained move over $1812.10 will signal the presence of buyers. This could trigger a labored rally with potential targets lined up at $1820.60, $1831.60 and $1842.90. This is followed by the main top at $1856.60.