Gold Price Futures (GC) Technical Analysis – May 10, 2018 Forecast
A weaker U.S. Dollar is helping to boost June Comex Gold prices on Thursday shortly before the regular session opening and the release of the U.S. consumer inflation report for April at 1230 GMT.
The CPI report could help gold extend the rally if the number misses to the downside. The CPI is expected to come in at 0.3%, up from -0.1%. The Core CPI is expected to rise 0.2%.
Daily Technical Analysis
The main trend is down according to the daily swing chart. However, the new secondary higher bottom at $1304.20 suggests momentum may be getting ready to shift to the upside.
A trade through $1320.20 will change the main trend to up. A move through $1304.20 will be the first sign of weakness. A trade through $1302.30 will signal a resumption of the downtrend.
The main support is a retracement zone bounded by $1311.40 to $1296.20.
The main range is $1369.40 to $1302.30. If the rally gains traction then we could see a move into its retracement zone at $1335.90 to $1343.80.
Daily Technical Forecast
Based on the early price action, the direction of the gold market today will be determined by trader reaction to the 50% level at $1311.40.
A sustained move over $1311.40 will indicate the presence of buyers. This could create the upside momentum needed to take out $1320.10. The daily chart shows there is plenty of room to the upside with $1335.90 the next major target.
A sustained move under $1311.40 will signal the presence of sellers. This could drive the market into the minor bottom at $1304.20, followed closely by the main bottom at $1302.30 and the Fibonacci level at $1296.20.
Basically, we’re looking for a strong upside bias to develop on a sustained move over $1320.10 and for a downside bias to develop on a sustained move under $1311.40.