Gold Price Futures (GC) Technical Analysis – Inside Move Suggests Investor Indecision, Impending Volatility

Gold futures touched their lowest level of the year on Wednesday before posting a potentially bullish closing price reversal bottom. The price action doesn’t mean the trend is getting ready to turn up, but it does indicate that the buying may be greater than the selling at current price levels.

At 0624 GMT, June Comex gold futures are trading $1289.00, down $2.50 or -0.20%.

The catalysts behind the price action are the direction of Treasury yields, the U.S. Dollar and renewed geopolitical tensions over North Korea.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through $1285.70 will negate the closing price reversal bottom and signal a resumption of the downtrend.

A move through $1296.40 will confirm the closing price reversal bottom. This could trigger the possible start of a 2 to 3 day rally.

The main retracement zone is $1296.20 to $1311.40. Trading on the weak side of this zone is giving gold a downside bias. This area is resistance.

The new short-term range is $1326.30 to $1285.70. If the reversal bottom is confirmed then its 50% level at $1306.00 will become the primary upside target.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the gold market today will be determined by trader reaction to $1296.40 or $1285.70.

Look for a bullish bias to develop on a sustained move over $1296.40. This could create the upside momentum needed to challenge $1306.00 the $1311.40. Since the trend is down, sellers are likely to come in on a test of this area.

Look for a bearish bias to develop on a sustained move under $1285.70. The daily chart is wide open under this level with the near-term target the December 12 bottom at $1247.20.