Gold Price Futures (GC) Technical Analysis – June 1, 2018 Forecast

August Comex Gold futures plunged shortly after the release of the better than expected U.S. Non-Farm Payrolls report. Payrolls came in at 223K, beating the 189K forecast. The unemployment rate fell to 3.8%. The most bearish news was the 0.3% gain in Average Hourly Earnings. Traders were looking for a reading of 0.2%.

Treasury yields rose on the news, sending gold prices sharply lower.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through $1286.80 will signal a resumption of the downtrend.

Resistance is a minor top at $1311.50 and a main top at $1312.60. Support is a minor bottom at $1292.00 and a main bottom at $1286.80.

The market crossed to the weak side of a major retracement zone at $1300.60 to $1315.60. Both levels are new resistance.

The short-term retracement zone at $1309.60 to $1315.00 is also resistance.

Daily Technical Forecast

Based on the early price action, the direction of the gold market the rest of the session is likely to be determined by trader reaction to an uptrending Gann angle at $1294.80.

A sustained move over $1294.80 will indicate that buyers came in on the break. This could lead to a retest of the major Fib level at $1300.60. This is followed by a pair of Gann angles at $1302.80 and $1304.40. The trigger point for an upside breakout is $1304.40.

Overtaking $1304.40 could trigger a further rally into $1309.60, followed closely by $1311.50.

A sustained move under $1294.80 will signal the presence of sellers. This could trigger a break into a pair of uptrending Gann angles at $1294.80 and $1288.80. The latter is the last potential support angle before the main bottom at $1286.80.