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Gold Price Futures (GC) Technical Analysis – Still Holding Above Major Support Zone at $1610.50 to $1580.40

Based on the early price action and the current price at $1626.90, the direction of the June Comex gold futures market the rest of the session on Tuesday is likely to be determined by trader reaction to the Fibonacci level at $1610.50.
James Hyerczyk

Gold futures are being pressured by a stronger U.S. Dollar on Tuesday shortly after the cash market opening. Slightly better risk appetite the last several days is also weighing on prices after a surge early last week. ‘

The price action is also being influenced by U.S. economic data released early Tuesday. The S&P/CS Composite-20 HPI report came in lower than expected at 3.1%. Chicago PMI came in at 47.8, being the forecast but still indicating a contraction. The Conference Board’s Consumer Confidence Index was also better than forecast at 120.00. However, this was down from 132.60.

At 14:19 GMT, June Comex gold futures are trading $1626.90, down 16.00 or -0.97%.

Daily June Comex Gold

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through $1707.80 will change the main trend to up. A move through the last swing bottom at $1453.00 will signal a resumption of the downtrend.

The minor trend is also down. The new minor top is $1698.00.

The short-term range is $1707.80 to $1453.00. Its retracement zone at $1610.50 to $1580.40 is providing support. Based on the price action the last five days, it looks as if this area is controlling the direction of the market.

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Daily Technical Forecast

Based on the early price action and the current price at $1626.90, the direction of the June Comex gold futures market the rest of the session on Tuesday is likely to be determined by trader reaction to the Fibonacci level at $1610.50.

Bullish Scenario

A sustained move over $1610.50 will indicate the presence of buyers. Overtaking the uptrending Gann angle at $1629.00 will indicate the buying is getting stronger. Taking out the downtrending Gann angle at $1643.80 could trigger an acceleration to the upside.

The best upside target angles drop in at $1675.80 and $1691.80 today. The latter is the last potential resistance angle before the tops at $1698.00 and $1707.80.

Bearish Scenario

A sustained move under $1610.50 will signal the presence of sellers. This could trigger a break into a support cluster at $1580.40 to $1579.80. The latter is a potential trigger point for an acceleration to the downside.

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