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Gold Price Futures (GC) Technical Analysis – Sellers Targeting $1613.00 to $1610.90

By:
James Hyerczyk
Published: Mar 30, 2020, 12:03 UTC

Based on the early price action and the current price at $1644.70, the direction of the June Comex gold futures contract the rest of the session on Monday is likely to be determined by trader reaction to the downtrending Gann angle at $1647.80.

Gold Price Futures (GC) Technical Analysis – Sellers Targeting $1613.00 to $1610.90

Gold prices are trading lower on Monday, mostly in reaction to a stronger U.S. Dollar, which is reducing foreign demand for the dollar-denominated asset. The dollar is edging higher against a basket of currencies as coronavirus lockdowns tightened across the world and investors braced for a prolonged period of uncertainty.

At 11:41 GMT, June Comex gold is trading $1644.70, down $9.40 or -0.57%.

Gold could be under pressure on Monday if today becomes a risk-off day and investors shed positions in risky assets, while moving money into the safe-haven dollar. Gold is not a safe-haven asset, it is an investment and currently locked in to a relationship with equities. Meaning a steep break in stocks is likely to drag down gold prices.

Daily June Comex Gold

Daily Technical Analysis

The main trend is down according to the daily swing chart, however, momentum is trending higher. A trade through $1707.80 will change the main trend to up. A move through $1453.00 will signal a resumption of the downtrend.

The market is also trading inside the wide range created on March 25. This tends to indicate investor indecision and impending volatility. Traders also formed a closing price reversal top. A trade through $1609.00 will confirm the potentially bearish chart pattern. This could trigger the start of a 2 to 3 day break.

The main range is $1707.80 to $1453.00. Its retracement zone at $1610.50 to $1580.40 is the next downside target and potential support area.

Daily Technical Forecast

Based on the early price action and the current price at $1644.70, the direction of the June Comex gold futures contract the rest of the session on Monday is likely to be determined by trader reaction to the downtrending Gann angle at $1647.80.

Bullish Scenario

A sustained move over $1647.80 will indicate the presence of buyers. If this move creates enough upside momentum then look for the rally to possibly extend into the next two downtrending Gann angles at $1677.80 and $1682.80. The latter is the last potential resistance angle before the $1698.00 minor top and the $1707.80 main top.

Bearish Scenario

A sustained move under $1647.80 will signal the presence of sellers. This could trigger a break into a support cluster at $1613.00 to $1610.50.

If $1610.50 fails then look for the selling to possibly extend into the 50% level at $1580.40. This is a potential trigger point for an acceleration to the downside.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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