Gold Price Futures (GC) Technical Analysis – May 9, 2019 Forecast

Gold futures are trading slightly higher on Thursday, but inside yesterday’s range. The price action indicates investor indecision and impending volatility. The market is showing little reaction to concerns over U.S.-China trade relations as investors turn to the Japanese Yen, U.S. Dollar and Treasury yields for safe-haven protection.

In economic news, U.S. Producer Inflation came in as expected, but Core PPI was slightly lower than forecast. The Trade Balance was better, but Weekly Unemployment Claims rose. The stock market is expected to open lower.

At 13:08 GMT, June Comex gold futures are trading $1282.40, up $1.00 or +0.08%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. It turned up on Wednesday when buyers took out $1290.90. Unfortunately for the bulls, sellers came in to stop the rally, leading to the formation of a minor reversal top.

A trade through $1292.80 will signal a resumption of the uptrend. A move through $1267.30 will change the main trend to down.

The short-term range is $1267.30 to $1292.80. Its retracement zone at $1280.10 to $1277.00 is potential support. Buyers could come in on a test of this zone in an effort to from a potentially bullish secondary higher bottom.

The intermediate range is $1314.70 to $1267.30. Its retracement zone at $1291.30 to $1296.80 is resistance. This zone stopped the rally on Wednesday at $1292.80.

The main range is $1330.80 to $1267.30. Its retracement zone at $1299.10 to $1306.50 is the next upside target. It is also a potential resistance zone.

Combining the retracement zones creates sold resistance at $1296.80 to $1299.10. The buying is going to have to be strong to take out this area.

Daily Technical Forecast

Based on the early price action, the direction of the June Comex gold futures contract the rest of the session is likely to be determined by trader reaction to the short-term 50% level at $1280.10.

Bullish Scenario

A sustained move over $1280.10 will indicate the presence of buyers. Overcoming the uptrending Gann angle at $1287.30 will indicate the buying is getting stronger. However, buyers still face a wall of resistance at $1291.30, $1292.80, and $1294.70.

Additional resistance is clustered at $1296.80, $1298.80 and $1299.10. This price is the trigger point for an acceleration into $1304.70.

Bearish Scenario

A failure to hold $1280.10 will signal the presence of sellers. The next target is a support cluster at $1277.30 to $1277.00. The market will open up to the downside under $1277.00 with the next target another support cluster at $1272.70 to $1272.30. This is the last potential support before the main bottom at $1267.30.