Gold Price Futures (GC) Technical Analysis – Pressure Under $1746.90 Could Lead to Test of $1711.90

Gold futures are trading lower on Monday as a jump in the safe-haven U.S. Dollar weighed on demand for the dollar-denominated commodity. Demand for the dollar increased as Turkey replaced its central bank governor with a high interest rate critic, triggering some turmoil in the global financial markets. Traders then flocked to the safe-haven U.S. Dollar and Japanese Yen for protection. Traders are showing little reaction to a drop in U.S. Treasury yields, which could be supportive for gold prices once the Turkey situation blows over.

At 09:11 GMT, June gold futures are trading $1730.70, down $13.20 or -0.76%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through $1676.20 will signal a resumption of the uptrend. The main trend will change to up on a move through $1817.60.

The minor trend is also down. A trade through $1756.00 will change the minor trend to up. This will shift momentum to the upside.

The short-term range is $1817.60 to $1676.20. Its retracement zone at $1746.90 to $1763.60 is resistance. This zone stopped the rally last week at $1756.00.

The market is currently trading inside a major retracement zone at $1788.50 to $1711.90. This zone is controlling the longer-term direction of the market.

Daily Swing Chart Technical Forecast

The direction of the June Comex gold market on Monday is likely to be determined by trader reaction to $1746.90.

Bearish Scenario

A sustained move under $1746.90 will indicate the presence of sellers. The first two downside targets are $1719.10 and $1711.90.

Taking out the major Fibonacci level at $1711.90 will put gold in a weak position, this could trigger a sharp break into $1699.40, followed by the main bottom at $1676.20.

Bullish Scenario

A sustained move over $1746.90 will signal the presence of buyers. This could trigger a surge into $1756.00, followed by $1763.50. The latter is a potential trigger point for an acceleration into $1788.50.

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