Gold Price Futures (GC) Technical Analysis – Strong Move Through $1711.70 Could Trigger Surge into $1744.30

Gold futures are trading higher on Tuesday after hitting a nine-month low the previous session. The market is currently in a position to overtake a key long-term Fibonacci level that could trigger an acceleration to the upside.

The catalysts behind today’s rally are lower U.S. Treasury yields and a weaker dollar. There were no major events overnight to spark the move. The metal was just relatively cheap. Furthermore, we could be looking at position-squaring in the other market ahead of new week’s Fed meeting.

At 13:56 GMT, April Comex gold is trading $1712.80, up $34.80 or +2.07%.

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. This will break a long pattern of lower-bottoms and lower-tops.

The minor trend is also down. A trade through $1739.10 will change the minor trend to up. This will also shift momentum to the upside.

The major resistance is a long-term retracement zone at $1787.30 to $1711.70. The market is currently testing the lower end of this zone.

The minor range is $1815.20 to $1673.30. Its 50% level at $1744.30 is the next upside target.

Daily Swing Chart Technical Forecast

The direction of the April Comex gold futures contract into the close on Monday is likely to be determined by trader reaction to $1711.70.

Bullish Scenario

A sustained move over $1711.70 will indicate the presence of buyers. If this creates enough upside momentum then look for the rally to possibly extend into $1730.10 to $1744.30.

Overtaking $1744.30 could trigger an acceleration into $1787.30.

Bearish Scenario

A sustained move under $1711.70 will signal the presence of sellers. It will also indicate the market is just not ready to rally yet. But this is the number to watch. The support is $1679.60 to $1673.30. This is a potential trigger point for an acceleration into the April 1, 2020 main bottom at $1594.40.

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