Gold Price Futures (GC) Technical Analysis – May 11, 2018 Forecast

June Comex Gold futures are trading higher shortly before the regular session opening. A weaker U.S. Dollar and rising geopolitical tensions are helping to drive prices higher.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The trend turned up on Thursday when buyers took out the main top at $1320.10. A trade through $1304.20 will change the main trend to down.

The major support is the $1311.40 to $1296.20 retracement zone.

The main range is $1369.40 to $1302.30. Its retracement zone at $1335.90 to $1343.80 is the primary upside target.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the gold market today is likely to be determined by trader reaction to the old top at $1320.10.

A sustained move over $1320.10 will indicate the presence of buyers. This will indicate the buying is real rather than just short-covering. If the move is able to generate enough upside momentum then we should see a minimum rally back to $1335.90 over the near-term.

A sustained move under $1320.10 will signal the presence of sellers. This could trigger a pullback into $1311.40, where buyers will try to reestablish a new higher bottom.

A trade through $1304.20 will change the main trend to down. This could trigger a further break into $1302.30 then $1296.20. I don’t see this move happening unless the U.S. Dollar Index rallies to a new high.