Gold Price Futures (GC) Technical Analysis – Sustained Move Under $1746.90 Targets $1718.40 – $1711.90
Gold futures are trading lower on Friday after hitting its highest level since March 1 the previous session. Despite today’s early weakness, the market is still set to rise more than 1% on the week as Treasury yields and the U.S. Dollar pulled back from recent highs.
At 08:36 GMT, June Comex gold futures are trading $1746.40, down $11.80 or -0.67%.
Early Friday, gold is being pressured by rising Treasury yields and a stronger U.S. Dollar. The moves are likely being fueled by profit-taking ahead of the weekend, but some are saying that robust economic data from China boosted hopes of a swift recovery. A fast paced recovery will bring central banks closer to lifting their current easy monetary policy, which would pressure gold prices.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. The trend turned up on Thursday when buyers took out the last main top at $1756.00. The main trend will change to down on a trade through $1677.30.
Gold is currently trading inside a major retracement zone at $1788.50 to $1711.90. This zone is controlling the near-term direction of the market.
The new minor range is $1677.30 to $1759.40. Its 50% level at $1718.40 is potential support.
The short-term range is $1817.60 to $1676.20. The market is testing its 50% level at $1746.90 early Friday.
The main range is $1858.90 to $1676.20. Its 50% level at $1767.60 is potential resistance. Thursday’s rally stopped short of this level at $1759.40.
Daily Swing Chart Technical Forecast
The direction of the June Comex gold market on Friday is likely to be determined by trader reaction to the 50% level at $1746.90.
A sustained move under $1746.90 will indicate the presence of sellers. If this move creates enough downside momentum then look for a potential break into the support cluster at $1718.40 to $1711.90.
A sustained move over $1746.90 will signal the presence of buyers. If this generates enough upside momentum then look for the rally to possibly extend into $1759.40, followed by the 50% level at $1767.60. The latter is a potential trigger point for an acceleration into $1788.50.