Gold Price Futures (GC) Technical Analysis – May 23, 2018 Forecast

Increased demand for safe haven assets is helping to give June Comex Gold futures a boost on Wednesday. Traders are reacting to renewed geopolitical tension over U.S.-China trade relations in reaction to President Trump’s dissatisfaction with the negotiation process. Gold is rallying despite a stronger U.S. Dollar.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. However, momentum may be getting ready to shift to the upside. Today’s higher-high has made $1281.20 a new main bottom. A trade through this level will signal a resumption of the downtrend.

The main range is $1375.50 to $1281.20. Its retracement zone at $1311.40 to $1296.20 is controlling the longer-term direction of the market.

The short-term range is $1326.30 to $1281.20. Its retracement zone at $1303.80 to $1309.10 is the primary upside target.

The overlap of the two retracement zones makes $1309.10 to $1311.40 a potential resistance cluster. Since the trend is down, sellers are likely to show up on a test of this area.

Daily Swing Chart 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 the major Fibonacci level at $1296.20.

A sustained move under $1296.20 will indicate the presence of sellers. If this move creates enough downside momentum, we could see a retest of the bottom at $1281.20. This is a potential trigger point for an acceleration to the downside with $1247.20 the next major downside target.

Overcoming $1296.20 and sustaining the move will signal the presence of buyers. If move may generate the upside momentum needed to drive the market into a series of retracement levels at $1303.80, $1309.10 and $1311.40. Look for selling on the first test of these levels.

The 50% level at $1311.40 is the trigger point for an upside breakout, however, the trend won’t change to up unless the buying is strong enough to take out $1326.30.