Gold Price Futures (GC) Technical Analysis – Strengthens Over $1570.70, Weakens Under $1564.10

Gold prices are trading mixed on Friday as traders await the release of the latest U.S. Non-Farm Payrolls report. The market was driven higher early in the session by traders likely buying the yellow metal as a hedge against possible stock market weakness.

Traders also said fear over the rapidly spreading coronavirus outbreak and its economic impact provided support. Perhaps keeping a lid on the market is the stronger U.S. Dollar which tends to weigh on foreign demand for gold-denominate gold.

At 08:49 GMT, April Comex gold is trading $1569.90, down $0.20 or -0.01%.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through $1551.10 will signal a resumption of the downtrend. Taking out $1598.50 will change the main trend to up.

The major support is the retracement zone at $1539.10 to $1520.00.

The short-term intermediate range is $1542.80 to $1598.50. Its retracement zone at $1570.70 to $1564.10 is currently being tested. Trader reaction to this zone will determine the near-term direction of the market. Overcoming it could lead to a challenge of the recent high. A failure at this zone will likely form another secondary lower top.

The main range is $1619.60 to $1542.80. Its retracement zone at $1581.20 to $1590.30 is potential resistance.

Daily Technical Forecast

Based on the early price action and the current price at $1569.90, the direction of the April Comex gold futures market the rest of the session on Friday is likely to be determined by trader reaction to the short-term 50% level at $1570.70.

Bullish Scenario

A sustained move over $1570.70 will indicate the presence of buyers. This could trigger a rally into a resistance cluster at $1576.70 to $1577.60. Overcoming this area could trigger a further rally into the 50% level at $1581.20. This is a potential trigger point for an acceleration to the upside with the Fibonacci level at $1590.30 the next likely upside target.

Bearish Scenario

A sustained move under $1570.70 will signal the presence of sellers. The first downside target is the short-term Fibonacci level at $1564.10. This is followed by an uptrending Gann angle at $1559.80. This is a potential trigger point for an acceleration into $1551.30 to $1551.10.