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Gold Price Futures (GC) Technical Analysis – Strong Buying Volume Over $1744.30 Could Fuel Surge into $1787.30

By:
James Hyerczyk
Published: Mar 18, 2021, 06:55 UTC

The direction of the April Comex gold futures contract on Thursday is likely to be determined by trader reaction to the short-term pivot at $1744.30.

Gold

In this article:

April Comex gold futures are trading higher early Thursday, hitting a two-week, high after the U.S. Federal Reserve pledged to keep near-zero interest rates until 2023. Gains may have been limited by an overnight jump in Treasury yields, which likely rose in reaction to the central bank’s forecast of a strong economic rebound.

At 06:35, April Comex gold futures are at $1749.40, up $22.30 or +1.29%.

The U.S. economy was on track for its fastest expansion in nearly 40 years, the Fed said on Wednesday while reaffirming its ultra-easy monetary policy stance amid an expected, although temporary surge in inflation.

Now that the smoke has cleared, the biggest influence on the direction of gold prices will remain Treasury yields. Over the short-run, however, the direction of the U.S. Dollar will exert an influence especially if it weakens.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart, however, momentum is trending higher. A trade through $1673.30 signal a resumption of the downtrend. The main trend will change to up on a move through $1815.20.

The minor trend is up. This is controlling the momentum. The minor trend will change to down on a move through $1722.00.

The key support is the long-term Fibonacci level at $1711.70.  The key resistance is the long-term 50% level at $1787.30.

The short-term range is $1815.20 to $1673.30. The market is currently trading on the strong side of its 50% level at $1744.30, giving it an early upside bias today.

Daily Swing Chart Technical Forecast

The direction of the April Comex gold futures contract on Thursday is likely to be determined by trader reaction to the short-term pivot at $1744.30.

Bullish Scenario

A sustained move over $1744.30 will indicate the presence of buyers. If this move can generate enough upside momentum the look for a surge into the major 50% level at $1787.30.

Bearish Scenario

A sustained move under $1744.30 will signal the presence of sellers. This could trigger a sharp break into the minor bottom at $1722.00. If this price fails then momentum will shift to the downside with $1711.70 the next target. This is a potential trigger point for an acceleration to the downside.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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