Gold Price Futures (GC) Technical Analysis – June 7, 2018 Forecast

Gold futures are trading slightly higher, but inside yesterday’s range, suggesting investor indecision and impending volatility.  Higher U.S. Treasury yields and rising stock indexes are helping to put a lid on the market. A weaker U.S. Dollar Index may be providing support. However, most of the action is being driven by a surge in the Euro. Overall, volume is below average and volatility is low.

At 1140 GMT, August Comex Gold futures are trading $1302.00, up $0.60 or +0.04%.

Daily Swing Chart Technical Analysis

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

The minor trend is also down. This is generating downside momentum. A trade through $1311.50 will change the minor trend to up and shift momentum to the upside. A move through $1312.60 will indicate the buying is getting stronger.

A trade through $1293.10 will indicate the selling is getting stronger.

The major retracement zone is $1315.60 to $1300.60. This zone is controlling the near-term direction of the market.

The main range is $1332.40 to $1286.80. Its retracement zone at $1309.60 to $1315.00 is inside the main retracement zone.

Combining the two retracement zones makes $1315.00 to $1315.60 a major resistance cluster.

Daily Swing Chart Technical Forecast

Based on the early trade and the current price at $1302.00, the direction of the gold market the rest of the session is likely to be determined by trader reaction to the main Fibonacci level at $1300.60.

A sustained move over $1300.60 will indicate the presence of buyers. If this generate enough upside momentum, we could see a more through yesterday’s high at $1306.10, followed by the short-term 50% level at $1309.60.

Taking out $1309.60 could trigger a further rally into minor tops at $1311.50 and $1312.60 and the resistance cluster at $1315.00 to $1315.60.

A sustained move under $1300.60 will signal the presence of sellers. This could trigger a plunge into minor bottoms at $1293.10 and $1292.00, followed by the main bottom at $1286.80.