Gold Price Futures (GC) Technical Analysis – Trade Through $1290.90 Changes Main Trend to Up
Gold futures are trading slightly better late in the session after a see-saw trade earlier in the day. Initially, gold was bid higher as investors seeking shelter, moved into the safe-haven asset. The early buying was fueled by a steep drop in demand for higher risk assets. Prices started to weaken after the selling in the stock market stopped.
At 19:37 GMT, June Comex gold is trading $1282.10, up $0.80 or +0.06%.
Stocks rallied late in the day after Chinese officials signaled they would be coming to Washington later in the week to discuss trade. On Sunday, President Trump fueled a steep drop in shares after he said he would raise tariffs. Speculators thought this would lead the Chinese delegation to cancel their appearance at the meeting.
The recovery in the stock market led investors to pare positions in the safe-haven U.S. Treasurys and U.S. Dollar. This pushed gold prices slightly higher for the session.
Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart. A trade through $1290.90 will change the main trend to up. A move through $1267.30 will reaffirm the downtrend.
A series of retracement levels has been controlling the price action in gold recently.
On the downside, the support is a pair of Fibonacci levels at $1277.50 and $1266.90.
On the upside, the resistance is layered at $1285.50, $1289.90 and $1292.50.
Daily Swing Chart Technical Forecast
Based on Monday’s trade, the direction of gold late in the session will be determined by trader reaction to $1277.50 and $1285.50. Trading between these levels will produce a sideways trade.
A sustained move over $1285.50 will indicate the presence of buyers. The first target is $1289.90, followed closely by the main top at $1290.90.
The main trend will change to up on a move through $1290.90. However, taking out $1292.50 will trigger an acceleration to the upside with $1302.50 the next potential target.
The inability to sustain a move over $1285.50 will be the first sign of weakness. Taking out $1277.50 could trigger an acceleration to the downside with the next targets $1268.90 and the main bottom at $1267.30.