Gold Price Futures (GC) Technical Analysis – June 11, 2019 Forecast

Gold futures are trading lower on Tuesday shortly after the regular session opening. The early selling pressure is being driven by rising Treasury yields and increasing demand for risky assets. The market fell as low as $1323.60, taking out the June 4 low in the process, before recovering slightly. The move was fueled by a steady U.S. Producer Inflation report.

At 13:38 GMT, August Comex gold futures are trading $1328.30, down $1.10 or -0.08%.

On Tuesday, the U.S. Labor Department said in a report that business prices inched higher in May, the latest data to suggest anemic inflation in the United States. The Producer Price Index rose a seasonally adjusted 0.1% in May from a month earlier. Core PPI rose 0.2% as expected.

Gold prices rose after the release of the PPI data because the muted inflation figures support the chances of a Fed rate cut in either June or July.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through $1352.70 will signal a resumption of the uptrend. The main trend will change to down on a move through $1274.60. This is highly unlikely today, but there is room for a normal correction into a retracement zone.

The long-term retracement zone is $1332.60 to $1307.70. The market is currently trading inside this zone, suggesting neutral long-term sentiment.

The short-term range is $1274.60 to $1352.70. This makes $1313.70 to $1304.40 the primary downside target. Since the trend is up, buyers should step in on a test of this are. It also represents value.

Daily Technical Forecast

Based on the early price action, the direction of the August Comex gold market the rest of the session is likely to be determined by trader reaction to the uptrending Gann angle at $1330.00 and the downtrending Gann angle at $1323.00. Holding inside this range is likely to produce a choppy, two-sided trade.

Bullish Scenario

A sustained move over $1330.00 will indicate the presence of buyers. This could lead to a test of $1332.60. This is a potential trigger point for an acceleration to the upside with the next target angle dropping in at $1342.30.

Bearish Scenario

A sustained move under $1330.00 will signal the presence of sellers. Crossing to the weak side of the downtrending Gann angle at $1323.00 will signal that the selling is getting stronger. This could trigger an acceleration to the downside with the next target coming in at $1313.70. Start looking for buying opportunities if the market drops to this level.