Gold Price Futures (GC) Technical Analysis – March 16, 2018 Forecast

April Comex Gold is picking up a bid on Friday, supported by a weaker U.S. Dollar and safe haven demand amid U.S. political worries and tensions between the United Kingdom and Russia. However, gains are being limited by expectations that the U.S. Federal Reserve would raise its benchmark interest rate at least 25 basis points at its monetary policy meeting next week.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through $1313.20 will signal a resumption of the downtrend. This could trigger a further break into the next main bottom at $1303.60.

A move through $1330.50 will change the main trend to up. If there is enough upside momentum, the rally could extend into $1342.00.

The short-term range is $1303.60 to $1342.00. Its retracement zone at $1322.80 to $1318.30 is controlling the short-term direction of the market. This zone is currently being tested.

The main range is $1364.40 to $1303.60. If there is a surge to the upside then its retracement zone at $1334.00 to $1341.20 will become the primary upside target.

Daily Technical Forecast

Based on the early price action, the direction of the gold market the rest of the session is likely to be determined by trader reaction to $1318.30.

A sustained move over $1318.30 will indicate the presence of buyers. If the upside momentum continues then look for the move to extend into the 50% level at $1322.80. Over taking this level could extend the move into a pair of Gann angles at $1325.60 to $1326.40. This is essentially a resistance cluster.

Look for a technical bounce on the first test of the resistance cluster. However, watch for an acceleration to the upside if this area is taken out with the first target $1330.50, followed by $1334.00. This is another trigger point for an acceleration into $1341.20.

A sustained move under $1319.30 will signal the presence of sellers. The next downside target is $1314.60. This is the trigger point for an acceleration into a support cluster at $1306.60.