Gold Price Futures (GC) Technical Analysis – Reaction to $1315.10 Will Determine Direction into Close

Gold futures are trading higher, but inside yesterday’s range. This chart pattern typically indicates investor indecision and impending volatility. Traders may be asking why the sharply lower U.S. Dollar against a basket of currencies is not driving gold prices through the roof. This is because of the rise in U.S. Treasury yields and increased demand for risky assets. Both of which make gold a less-desirable asset.

At 20:01 GMT, April Comex gold futures are trading $1314.20, up $2.30 or +0.18%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through $1331.10 will signal a resumption of the uptrend. The main trend will change to down on a move through $1281.50.

The minor trend is also up. It will change to down on a trade through $1306.40. Taking out $1319.50 will signal a resumption of the minor uptrend.

Gold is currently trading inside a long-term retracement zone at $1293.60 to $1319.70. This zone is controlling the near-term direction of the market.

The main range is $1281.50 to $1331.10. Its retracement zone at $1306.30 to $1300.40 is the primary downside target. It is also support. With the main trend up, look for buyers to come in on a test of this zone.

The short-term range is $1331.10 to $1306.40. Its 50% level or pivot is $1318.80. This price forms a resistance cluster with the minor top at $1319.50 and the major Fibonacci level at $1319.70.

Daily Technical Forecast

Based on the current price at $1314.20, the direction of the April Comex gold market into the close is likely to be determined by trader reaction to the short-term downtrending Gann angle at $1315.10.

Bullish Scenario

A sustained move over $1315.10 will indicate the presence of buyers. If this creates enough upside momentum then look for the rally to possibly extend into the resistance cluster at $1318.80 to $1319.70. The latter is a potential trigger point for an acceleration to the upside.

Bearish Scenario

A sustained move under $1315.10 will signal the presence of sellers. If this move generates enough downside momentum then look for the selling to extend into the longer-term uptrending Gann angle at $1307.50. This is followed closely by last week’s low at $1306.40 and the main 50% level at $1306.30.

Look for a potential acceleration to the downside if $1306.30 fails. The next downside target is the main Fibonacci level at $1300.40.