Gold Price Futures (GC) Technical Analysis – March 8, 2019 Forecast

Gold futures are trading higher shortly after the regular session opening and ahead of the U.S. Non-Farm Payrolls report. The selling is being fueled by increased demand for safe-haven assets in reaction to a drop in Treasury yields a weaker U.S. Dollar and lower appetite for risk. Concerns about a global economic slowdown are fueling the shift in investor sentiment.

At 13:25 GMT, April Comex gold futures are trading $1292.00, up $5.90 or +0.46%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. 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 on the daily chart for a sizable counter-trend rally.

The main range is $1209.30 to $1349.80. Its retracement zone at $1279.60 to $1263.00 is the primary downside target. Buyers came in on Thursday at $1280.80 to defend this price level.

The short-term range is $1349.80 to $1280.80. If the rally continues then look for an eventual move into its retracement zone at $1315.30 to 1323.40.

Daily Technical Forecast

Based on the early price action, the direction of the April Comex gold futures market on Friday is likely to be determined by trader reaction to the long-term uptrending Gann angle at $1286.30.

Bullish Scenario

A sustained move over $1286.30 will indicate the presence of buyers. The first upside target is a downtrending Gann angle at $1301.80. Since the main trend is down, look for sellers on the first test of this angle. Overtaking it, however, could trigger an acceleration to the upside with the next major target a 50% level at $1315.30.

Bearish Scenario

A failure to overcome $1301.80 will indicate the buying has slowed or the selling has increased. Taking out $1286.30 will indicate the selling is getting stronger. This could drive gold into $1280.80 to $1279.60.

The 50% level at $1279.60 is the trigger point for an acceleration to the downside with the Fib level at $1263.00 the next major downside target.