Gold Price Futures (GC) Technical Analysis – Strengthens Over $1711.70, Weakens Under $1705.70

Gold futures closed higher on Friday in a volatile session that saw the market claw back sharp losses to close higher for the day. The catalyst for the early session weakness was another rise in Treasury yields and a recovery in the U.S. Dollar against a basket of major currencies.

On Friday, April Comex gold futures settled at $1719.80, down $2.80 or -0.16%.

The small loss could’ve been worse if not for a late session rally triggered as yields pulled back from their highs and the dollar gave up some of its gains. Nonetheless, gold was able to post its best week in seven, closing up 1.25%.

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. A trade through $1738.00 will change the minor trend to up. This will also shift momentum to the upside. A second minor top comes in at $1739.10.

The market is currently trading inside a major retracement zone at $1787.30 to $1711.70. This zone is controlling the longer-term direction of the market.

The minor range is $1673.30 to $1738.00. Its 50% level at $1705.70 is potential support.

The short-term range is $1815.20 to $1673.30. Its 50% level at $1744.30 is a potential upside target.

Short-Term Outlook

Friday’s strong rebound suggests the key area to watch early Monday is $1711.70 to $1705.70.

Bullish Scenario

A sustained move over $1711.70 will indicate the presence of buyers. The first upside target is the loose price cluster at $1738.00, $1739.10 and $1744.30.

Taking out $1738.00 and $1739.10 will change and reaffirm the minor trend, respectively, shifting momentum to the upside, but $1744.30 is the potential trigger point for an acceleration to the upside.

The daily chart indicates there is plenty of room to the upside over $1744.30 with $1787.30 the next likely upside target.

Bearish Scenario

A sustained move under $1705.70 will signal the presence of sellers. If this move creates enough downside momentum then look for the selling to possibly extend into $1673.30. This price is a potential trigger point for an acceleration to the downside.

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