Gold Price Futures (GC) Technical Analysis – January 30, 2019 Forecast

Gold futures are trading higher but inching back from the more than 6 month high it reached early in the session at $1320.80. Profit-taking and position-squaring ahead of the Fed’s interest rate decision, the release of the Fed’s monetary policy statement and Fed Chair Jerome Powell’s press conference at 19:00 GMT, may be putting pressure on prices.

At 13:17 GMT, April Comex gold is trading $1316.50, up $1.50 or +0.12%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed earlier in the session. A trade through $1320.80 on an intraday basis will signal a resumption of the uptrend. The next target is the main top at $1337.80.

Due to the prolonged move up in terms of price and time, traders should watch for signs of a top. The best sign will be a higher-high, lower-close or closing price reversal top. A trade through $1281.50 will change the main trend to down.

The market is currently trading inside a long-term retracement zone formed by a 50% level at $1293.60 and a Fibonacci level at $1319.70.

The short-term range is $1281.50 to $1320.80. If there is a pullback then its retracement zone at $1301.20 to $1296.50 will become the primary downside target.

Daily Technical Forecast

Based on the earlier price action, the direction of the April Comex gold futures contract is likely to be determined by trader reaction to the Fibonacci level at $1319.70.

Bullish Scenario

A sustained move over $1319.70 will indicate the presence of buyers. Taking out today’s intraday high at $1320.80 will indicate the buying is getting stronger. Watch for a potential acceleration to the upside. The daily chart indicates there is no resistance until $1337.80.

Bearish Scenario

A sustained move under $1319.70 will signal the presence of sellers. The first target is a steep uptrending Gann angle at $1313.50. This angle, moving at a rate of $8.00 per day, has been guiding the market higher since January 24.

If traders take out $1313.50 with conviction then look for a potential acceleration to the downside with the next targets coming in at $1302.60 and $1301.20.