Gold Price Futures (GC) Technical Analysis – January 29, 2019 Forecast

Gold futures are trading higher as the technical breakout continues. Earlier today, the market hit its highest level since June 14. The rally is being fueled primarily by the weaker U.S. Dollar, which is feeling pressure ahead of the start of the Fed’s two-day meeting later today. On Wednesday, Fed policymakers are expected to leave its benchmark interest rate unchanged, while possibly announcing the end of its balance sheet reduction program. Both moves are being perceived as dovish by traders.

At 1154 GMT, April Comex gold is trading $1312.70, up $3.40 or +0.26%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through $1281.50 will change the main trend to down. Due to the steepness of the move since Friday, long traders should watch for a closing price reversal top.

A trade back under the previous main top at $1306.50 will also be a sign of renewed selling pressure, or the absence of buyers.

The major upside target and potential resistance is the Fibonacci level at $1319.70. On the downside, the major support is the long-term 50% level at $1293.60.

Short-term, the current range is $1281.50 to today’s high at $1314.60. If there is a pullback then its 50% level at $1298.00 will become the primary downside target.

Daily Swing Chart Technical Forecast

The key support angle today is a steep uptrending Gann angle from the $1281.50 bottom, moving up at a rate of $8.00 per day from January 24. It comes in at $1305.50 today.

Look for a bullish tone as long as the April Comex gold market holds above $1305.50. If the upside momentum continues then look for a potential move into the major Fibonacci level at $1319.70.

We could see a technical bounce on the first test of $1305.50, however, if it fails then look for the selling to extend into $1300.60 to $1298.00.