Gold Price Futures (GC) Technical Analysis – Strengthens Over $1746.90, Weakens Under $1737.50

Gold futures are trading higher late in the session on Friday as the U.S. Dollar turned lower against a basket of currencies and Treasury yields eased off their highs. However, the strength in the dollar all week has put the precious metal on course for its first weekly decline in three.

At 17:20 GMT, June Comex gold futures are trading $1734.30, up $7.00 or +0.41%.

The 10-year U.S. Treasury yield came off its high on Friday after a report showed the latest inflation data came in as expected.

The Core Personal Consumption Expenditure Price Index, which strips out volatile food and energy prices, rose 0.1% month over month, matching expectations from economists polled by Dow Jones. Year over year, the gauge climbed 1.4%, slightly lower than a 1.5% estimate.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. The main trend changes to up on a move through $1817.60. A trade through $1676.20 will signal a resumption of the downtrend.

The minor trend is also down. A trade through $1756.00 will change the minor trend to up. This will also shift momentum to the upside. A move through $1719.10 will indicate the selling pressure is getting stronger.

On the downside, the support is the long-term Fibonacci level at $1711.90, followed by a minor Fibonacci level at $1706.70.

The minor range is $1756.00 to $1719.10. Its pivot at $1737.50 is acting like resistance today.

The short-term range is $1817.60 to $1676.20. Its retracement zone at $1746.90 to $1763.60 is another resistance area.

The long-term 50% level at $1788.50 is the major resistance.

Short-Term Outlook

The direction of the June Comex gold market into the close on Friday is likely to be determined by trader reaction to the pivot at $1737.50.

Bullish Scenario

A sustained move over $1737.50 will indicate the presence of buyers. This could trigger a late session surge into $1746.90. This is a potential trigger point for an acceleration to the upside with the next target the minor top at $1756.00, followed by $1763.60.

Bearish Scenario

A sustained move under $1737.50 will signal the presence of sellers. If this move creates enough downside momentum then look for a potential break into $1719.10, followed by $1711.90 and $1706.70.

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