Gold Price Futures (GC) Technical Analysis – Needs to Hold $1727.50 to Sustain Upside Bias

Gold futures are inching higher on Friday shortly before the release of the U.S. Retail Sales report at 12:30 GMT that could set the tone of the market the rest of the session. The market got a boost on Thursday on the hopes of another stimulus package from the U.S. government.

At 11:22 GMT, June Comex gold is trading $1742.40, up $1.50 or +0.09%.

Gold is also being underpinned by a lower U.S. Dollar Index, a drop in U.S. Treasury yields and lower demand for risky assets.

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 last swing top at $1737.00. The trend will turn down when sellers take out the last swing bottom at $1676.00.

The minor trend is also up. A trade through $1692.10 will change the minor trend to down. This will also shift momentum to the downside.

The short-term range is $1788.80 to $1666.20. Its 50% level at $1727.50 is support. Based on this month’s price action, it appears to be controlling the direction of the market.

The intermediate range is $1576.00 to $1788.80. Its retracement zone at $1682.40 to $1657.30 is the major support. It stopped the selling at $1666.20 and $1676.00.

Daily Swing Chart Technical Forecast

Based on the early price action and the current price at $1742.40, the direction of the June Comex gold market the rest of the session on Friday is likely to be determined by trader reaction to the 50% level at $1727.50.

Bullish Scenario

A sustained move over $1727.50 will indicate the presence of buyers. If this is able to generate enough upside momentum over the near-term then look for a drive into the two main tops at $1764.20 and $1788.80.

Bearish Scenario

A sustained move under $1727.50 will signal the presence of sellers. If this is able to generate enough downside momentum then look for a break into a minor pivot at $1720.50, followed by a minor bottom at $1692.10.