Gold Price Futures (GC) Technical Analysis – March 13, 2019 Forecast

Safe-haven buying and weaker-than-expected U.S. economic data are helping to boost gold prices on Wednesday. The early session surge was fueled by concerns over Brexit after British MPs rejected U.K. Prime Minister May’s strategy to leave the European Union.

In other news, U.S. wholesale prices barely increased in February after falling for three straight months, a sign there is little inflation pressure in the economy. The Durable Goods report was mixed. This news means the Fed will remain “patient” about raising rates, which is supportive for gold prices.

At 13:10 GMT, April Comex gold is trading $1307.70, up $9.60 or +0.73%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. However, momentum is trending higher. A trade through $1280.80 will signal a resumption of the downtrend. The market is in no position to change the main trend to up, but there is room for a 50% to 61.8% correction.

The minor trend is up. This is helping to generate the upside bias.

Daily Technical Forecast

Bullish Scenario

If today’s early upside momentum continues then look for a rally into the 50% level at $1315.30. Since the main trend is down, look for sellers to show up on the first test of this level. Overcoming $1315.30 will indicate the buying is getting stronger with the next target a downtrending Gann angle at $1319.80. Sellers could show up on the first test of this level. Overtaking the angle could extend the rally into the Fibonacci level at $1323.40.

Bearish Scenario

If the upside momentum stalls and the market begins to retreat then look for a potential break into the steep uptrending Gann angle at $1296.80. This angle is potential support. Look for aggressive counter-trend buyers on the first test of this angle. If it fails as support then look for the selling to possibly extend into the support cluster at $1289.80 to $1288.80.