Gold Price Futures (GC) Technical Analysis – Needs to Overcome $1744.30 to Fuel Acceleration into $1787.30

Gold futures touched their high of the session as traders interpreted the Federal Reserve’s monetary policy announcements as dovish. Following the Fed’s decisions, U.S. Treasury yields fell sharply, dragging down the U.S. Dollar, while driving up demand for dollar-denominated gold.

At 20:00, April Comex gold is trading $1743.90, up $13.00 or +0.75%.

The Federal Reserve on Wednesday sharply ramped up its expectations for economic growth but indicated that there are no expected interest rate hikes through 2023 despite an improving outlook and a turn this year to higher inflation, CNBC reported.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart, but momentum is trending higher. A trade through $1673.30 will signal a resumption of the downtrend. The main trend will change to up on a move through $1815.20.

The minor trend is up. This is controlling the upside momentum. The new minor bottom is $1722.00. A trade through this level will change the minor trend to down.

The key support is the longer-term Fibonacci level at $1711.70.

The short-term range is $1815.20 to $1673.30. Its 50% level at $1744.30 is resistance. It appears to be controlling the near-term direction of the market.

The key resistance is the longer-term 50% level at $1787.30.

Daily Swing Chart Technical Forecast

The price action on Wednesday suggests the direction of the gold market will be determined by trader reaction to $1744.30.

Bullish Scenario

A sustained move over $1744.30 will indicate the presence of buyers. If this creates enough upside momentum then look for an acceleration into $1787.30.

Bearish Scenario

A sustained move under $1744.30 will signal the presence of sellers. This will also indicate the market needs more time to establish a bona fide support base.

Taking out $1722.00 will shift momentum to the downside with $1711.70 the next target. We could see a sharp break if $1711.70 fails as support with potential downside targets coming in at $1696.00 and $1673.30.