Gold Price Futures (GC) Technical Analysis – Testing Long-Term Support Zone with $1775.00 Setting the Tone

Gold futures are trading lower shortly before the New York opening on Friday, but trying to bounce back from a seventh-month low. The precious metal posted its sixth-straight lower-lower trading session as firmer Treasury yields drove investors away from the non-interest bearing asset.

At 11:55 GMT, April Comex gold futures are trading $1766.60, down $8.40 or -0.47%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. The downtrend was reaffirmed earlier today when sellers took out Thursday’s low at $1766.60.

The main trend will change to up on a move through $1856.60. This is not likely today, but Monday will be the seventh day from that main top, which will put the market inside the window of time for a closing price reversal bottom.

Gold is currently trading inside a long-term retracement zone at $1787.30 to $1711.70. Since entering the zone, however, the selling has not shown any signs of letting up despite this area being deemed as a value zone.

The minor range is $1856.60 to $1759.00. Its 50% level at $1807.80 is a potential short-term upside target price.

The key resistance zone target controlling the near-term direction of the market is $1862.90 to $1887.40.

Daily Swing Chart Technical Forecast

The early price action suggests the direction of the April Comex gold market on Friday will be determined by trader reaction to Thursday’s close at $1775.00.

Bearish Scenario

A sustained move under $1775.00 will indicate the presence of sellers. Taking out the intraday low at $1759.00 will indicate the selling is getting strong. This could lead to an eventual test of the long-term Fibonacci level at $1711.70 over the near-term.

Bullish Scenario

A sustained move over $1775.00 will signal the presence of buyers. The first upside target is the long-term 50% level at $1787.30. Overcoming this level could generate the momentum needed to challenge the minor 50% level at $1807.80.

A close over $1775.00 will form a potentially bullish closing price reversal bottom one day ahead of schedule.

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