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

Gold futures are trading slightly higher on Friday but inside yesterday’s range. The price action indicates investors may be booking profits or trimming positions ahead of the week-end after a stellar performance this week.

Cash market prices hit a more than one-week high of $1,738.58 on Thursday, bolstered by hopes of more stimulus from the United States, especially after jobless claims soared to a record 26 million in the past five weeks.

Weak economic data from the United States and Europe due to the novel coronavirus is expected to hold gold in a strong position as well as the continuation of global central bank stimulus. However, gains could be capped by a stronger U.S. Dollar, which is drawing some attention from safe-haven buyers.

At 10:11 GMT, June Comex gold is trading $1752.70, up $7.30 or +0.42%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through $1788.80 will signal a resumption of the uptrend. The main trend will change to down on a trade through the last swing bottom at $1666.20.

Minor top resistance comes in at $1768.00.

The minor range is $1788.80 to $1666.20. Its 50% level or pivot at $1727.50 is support today.

The short-term range is $1576.00 to $1788.80. Its retracement zone at $1682.40 to $1657.30 is support. This zone stopped the selling at $1666.20 on April 21.

The main range is $1453.00 to $1788.80. If the trend changes to down then look for its retracement zone at $1620.90 to $1581.30 to be tested.

Daily Swing Chart Technical Forecast

Based on the early price action and the current price at $1752.70, 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 pivot 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 then look for a retest of yesterday’s high at $1764.20, the minor top at $1768.00 and the main top at $1788.80.

Bearish Scenario

A sustained move under $1727.50 will signal the presence of sellers. This could trigger an acceleration to the downside with the next target the short-term retracement zone at $1682.40 to $1657.30.