Gold Price Futures (GC) Technical Analysis – Plenty of Room to Upside if Buyers Successfully Defend $1788.50

Gold futures are trading flat on Thursday, but hovering near its highest level since February 25, reached the previous session. The market continues to be underpinned by a weakening U.S. Dollar and dropping U.S. Treasury yields.

At 05:13 GMT, June Comex gold is trading $1792.90, down $0.20 or -0.01%.

In other news, June 10-year U.S. Treasury yield futures are moving higher, meaning yields are dipping slightly. On Wednesday, Treasury yields held steady as quiet trading in the bond market resumed.

Also on Wednesday, the U.S. Dollar gave up earlier gains to settle lower and are inching lower early Thursday. Meanwhile, traders are preparing for the European Central Bank’s (ECB) monetary policy decision that could move the dollar in either direction.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through $1798.40 will signal a resumption of the uptrend. A trade through $1723.20 will change the main trend to down. This is highly unlikely, but traders should keep watching for signs of a reversal top.

The minor trend is also up. A trade through $1763.50 will change the minor trend to down. This will also shift momentum to the downside.

The market is currently trading on the bullish side of the long-term 50% level at $1788.50. This has to hold in order to sustain the upside bias.

Other potential support levels come in at $1781.00, $1767.60 and $1760.80.

Daily Swing Chart Technical Forecast

The direction of the June Comex gold market on Thursday is likely to be determined by trader reaction to the major 50% level at $1788.50.

Bullish Scenario

A sustained move over $1788.50 will indicate the presence of buyers. Taking out $1798.40 will signal a resumption of the uptrend. This is a potential trigger point for an acceleration to the upside with the main top at $1817.60 the next likely upside target.

Bearish Scenario

A sustained move under $1788.50 will signal the buying is weak and the selling is stronger. This could lead to a labored break with potential support levels lined up at $1781.00, $1767.60, $1763.50 and $1760.80.

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