Gold Price Futures (GC) Technical Analysis – Strengthens Over $1788.50, Weakens Under $1767.60

Gold futures are trading higher late in the session on Tuesday as investors reacted to a drop in Treasury yields. However, a stronger U.S. Dollar Index may have put a lid on prices.

U.S. Treasury yields eased and held in a narrow range as investors awaited further market developments, while the dollar index steadied near its lowest level in about seven weeks.

At 20:46 GMT, June Comex gold futures are trading $1778.70, up $8.10 or +0.46%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through $1790.40 will signal a resumption of the uptrend. The main trend will change to down on a move through $1723.20.

The minor trend is also up. A new main top was formed at $1790.40. Taking out this level will indicate the buying is getting stronger.

On the upside, the major resistance is the long-term 50% level at $1788.50.

On the downside, a support is a series of potential 50% levels at $1767.60, $1756.80, $1747.20 and $1733.90.

The new minor range is $1790.40 to $1763.50. The market is testing its 50% level or pivot at $1777.00 late in the session.

Daily Swing Chart Technical Forecast

The direction of the June Comex gold futures contract into the close will be determined by trader reaction to $1777.00.

Bullish Scenario

A sustained move over $1777.00 will indicate the presence of buyers. This could trigger a quick move into $1788.50 to $1790.40. A breakout over $1790.40 could trigger an acceleration to the upside.

Bearish Scenario

A sustained move under $1777.00 will signal the presence of sellers. This could lead to a labored break with potential targets coming in at $1767.60, $1763.50 and $1756.80.