Advertisement
Advertisement

Gold Price Futures (GC) Technical Analysis – June 6, 2018 Forecast

By:
James Hyerczyk
Updated: Jun 6, 2018, 11:16 UTC

Based on early price action and the current price at $1298.70, the direction of the August Comex Gold futures market today is likely to be determined by trader reaction to the Fibonacci level at $1300.60.

Comex Gold

Gold is trading lower shortly before the regular session opening on Wednesday. Despite the weaker U.S. Dollar Index, sellers are in control. This is because of rising Treasury yields and increasing appetite for risky assets.

At 1055 GMT, August Comex Gold is trading $1298.30, down $3.90 or -0.30%.

Don’t be fooled by the weaker U.S. Dollar Index. It is being driven lower by a stronger Euro. The dollar is trading higher against the Japanese Yen and other currencies. Broad-based weakness by the dollar against all the major currencies would be bullish for gold, but not today. Treasury yields are dictating the tone in the market.

Comex Gold
Daily August Comex Gold

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. The minor trend is also down, which means momentum is also trending lower.

A move through $1293.10 will indicate the selling pressure is getting stronger. A trade through $1286.80 will signal a resumption of the downtrend.

The minor trend will change to up on a move through $1311.50. This will also shift momentum to the upside.

The major retracement zone controlling the longer-term direction of gold is $1300.60 to $1315.60.

The main range is $1332.40 to $1286.80. Its retracement zone at $1309.60 to $1315.00 is the primary upside target and resistance.

Daily Swing Chart Technical Forecast

Based on early price action and the current price at $1298.70, the direction of the August Comex Gold futures market today is likely to be determined by trader reaction to the Fibonacci level at $1300.60.

A sustained move under $1300.60 will signal the presence of sellers. If this move generates enough downside momentum, we could see a drive into last week’s low at $1293.10. Taking out this level could extend losses through $1292.00 with $1286.80 the major target.

Overtaking and sustaining a move over $1300.60 will indicate the presence of buyers. Taking out $1304.80 will indicate the buying is getting stronger. This could drive gold into a series of resistance levels at $1309.60, $1311.50 and $1312.60.

I don’t think it’s safe to buy gold for the long haul unless buyers can sustain a rally over $1315.60. This is the major resistance.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

Did you find this article useful?

Advertisement