Gold Price Futures (GC) Technical Analysis – May 25, 2018 Forecast

June Comex Gold has been posting a two-sided trade most of the session on Friday. Volume and volatility have been light ahead of the long holiday weaken and in reaction to mixed fundamentals. Geopolitical concerns may not be factoring into the price action with the price action likely being fueled by the movement in U.S. Treasury yields and the U.S. Dollar.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart, however, momentum is trying to shift to the upside.

The trend changes to up on a move through $1326.30. The downtrend will resume on a move through $1281.20.

The main range is $1375.50 to $1247.20. Gold is currently trading inside its retracement zone at $1311.40 to $1296.20. This zone 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 currently being tested. This means the market is simply going through a normal counter-trend correction.

Daily Swing Chart Technical Forecast

Based on the early trade, the direction of the gold market the rest of the session is likely to be determined by trader reaction to the short-term 50% level at $1303.80.

A sustained move over $1303.80 will indicate the presence of buyers. This could trigger a quick rally into a pair of potential resistance levels at $1309.10 and $1311.40. Taking out $1311.40 could trigger an acceleration to the upside.

A sustained move under $1303.80 will signal the presence of sellers. Taking out this level could spike the market into $1296.20. This price is the trigger point for an acceleration to the downside.