Gold Price Futures (GC) Technical Analysis – March 20, 2018 Forecast

Gold futures are trading lower shortly before the regular session opening. A relatively calm stock market and a firmer U.S. Dollar are helping to keep a lid on prices. Traders are also positioning themselves ahead of Wednesday’s U.S. Federal Reserve interest rate decision, monetary policy statement and economic projections.

At 1132 GMT, April Comex Gold is trading $1312.50, down $5.30 or $0.40%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. However, yesterday’s closing price reversal bottom may have temporarily stopped the downside momentum.

A trade through $1319.60 will confirm the closing price reversal bottom. This could trigger the start of a 2 to 3 day rally. The main trend will change to up on a move through $1330.50.

A move through $1307.40 will negate the reversal bottom and reaffirm the downtrend. This could drive the market into the next main bottom at $1303.60. We could see a steep sell-off begin if this price is taken out with conviction.

On the downside, the major retracement zone at $1306.60 to $1291.50 is the primary target and next major support zone. This zone stopped the selling at $1303.60 on March 1.

The short-term range is $1303.60 to $1342.00. Its retracement zone at $1318.30 to $1322.80 is new resistance. Overcoming this zone will indicate the return of buyers.

Daily Swing Chart Technical Forecast

Based on the early trade and inside move, we’re looking for an upside bias to develop on a sustained move over $1318.30, and for a possible acceleration to the downside if $1306.60 is taken out with rising volume.

A sustained move over $1318.30 will indicate the presence of buyers. This could trigger a move into $1322.80. Overtaking this level could generate the upside momentum needed to trigger an acceleration to the upside.

A sustained move under $1318.30 will signal the presence of sellers. This could create the downside momentum needed to challenge $1307.40 then $1306.60. Look for the sellers to pick up the pace on a sustained move under $1306.60 then $1303.60. The latter is a possible trigger point for an acceleration into the major Fibonacci level at $1291.50.