Gold Price Futures (GC) Technical Analysis – Pressured by Rising Yields; $1721.80 Sets Tone into Close

Gold futures are trading lower at the mid-session and well off their highs amid an intraday rise in Treasury yields and a bounce off its low of the session by the U.S. Dollar Index.

The catalyst behind the intraday retreat by gold is the U.S. report that showed fewer Americans filed for jobless claims than expected last week. Initially, bond traders treated the news as bullish. The 10-year Treasury yield moved back above 1.5%, lending some support to the U.S. Dollar that had been under pressure from the start of the session. The firmer dollar reduced foreign demand for dollar-denominated gold.

At 17:22 GMT, April Comex gold futures are trading $1720.30, down $1.50 or -0.09%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. 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 also down. The minor trend will change to up on a trade through $1739.10. This will also shift momentum to the upside.

On the downside, support is the long-term Fibonacci level at $1711.70. This is followed by a minor 50% level at $1705.70.

The minor range is $1815.20 to $1673.30. Its 50% level at $1744.30 is the next upside target. Look for sellers on the first test of this level. Taking it out could trigger an acceleration to the upside.

Another major upside target and possible resistance is the long-term 50% level at $1787.30.

Daily Swing Chart Technical Forecast

The direction of the April Comex gold market into the close is likely to be determined by trader reaction to $1721.80.

Bearish Scenario

A sustained move under $1721.80 will indicate the presence of sellers. The first downside target is $1711.70. If this fails then look for the selling to possibly extend into $1705.70.

$1705.70 is the last potential support before the new main bottom at $1673.30.

Bullish Scenario

A sustained move over $1721.80 will signal the presence of buyers. If this move creates enough upside momentum then look for the rally to possibly extend into $1738.00 to $1739.10.

Overtaking $13910 will change the minor trend to up with $1744.30 the next target. This is a potential trigger point for an acceleration to the upside.

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