Gold Price Futures (GC) Technical Analysis – June 4, 2018 Forecast

August Comex gold futures are trading flat shortly before the regular session opening. The market is rebounding after early session weakness failed to take out Friday’s low. The price action is being primarily driven by a weaker U.S. Dollar. Prices could surge to the upside if U.S. Treasury yields drop throughout the session.

Additionally, the latest data from the Commodity Futures Trading Commission shows the hedge and commodity funds could be building long positions.

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.

The minor trend is also down. A move through $1311.50 will change the minor trend to up. This will also shift momentum to the upside.

Today’s session begins with gold trading on the weak side of a major retracement zone at $1300.60 to $1315.60.

The short-term range is $1332.40 to $1286.80. Its retracement zone is resistance at $1309.60 to $1315.00.

Daily Technical Forecast

Based on the early price action, the direction of the August Comex Gold market today is likely to be determined by trader reaction to the uptrending Gann angle at $1295.80.

A sustained move over $1295.80 will indicate the presence of buyers. If this generates enough upside momentum then look for a test of the major Fibonacci level at $1300.60. This is followed closely by a downtrending Gann angle at $1302.40.

The intraday rally could pick up steam if aggressive counter-trend buyers can take out $1302.40 and sustain the move. The market will strengthen on a move over the uptrending Gann angle at $1304.80. This could trigger a move into the 50% level at $1309.60.

A sustained move under $1295.80 will signal the presence of sellers. This could lead to a test of a pair of Gann angles at $1291.30 and $1289.00. The latter is the last potential support angle before the main bottom at $1286.80.

Essentially, look for a strong upside bias to develop on a sustained move over $1302.40 and for the downside bias to continue on a sustained move under $1295.80.