Gold Price Futures (GC) Technical Analysis – Trend Changes to Down on Move Through $1329.10

Gold prices are under pressure late Wednesday after the Federal Reserve announced no change in its benchmark interest rate, but indicated that it expects inflation pressures to heat up as the year moves on.

At 1923 GMT, April Comex Gold is trading $1338.60, down $1.40 or -0.10%. Earlier in the session, the market hit a high of $1348.50.

The decision by the Federal Open Market Committee to leave interest rates at 1.25 to 1.50 percent was widely expected. This decision had almost no impact on the markets. However, investors were looking at the statement for clues on how the central bank might proceed for the rest of the year. This was going to be the news that moved the markets.

Daily Technical Analysis

The main trend is up according to the daily swing chart, however, momentum is shifting to the downside. A trade through $1329.10 will change the main trend to down. The uptrend will continue on a move through 1370.50.

The short-term range is $1329.10 to $1370.50. Its 50% level or pivot is $1349.80. This price is controlling the direction of the market today. Trading below this level is giving the market a downside bias.

The main range is $1242.70 to $1370.50. If the trend changes to down then its retracement zone at $1306.60 to $1291.50 will become the primary downside target.

Daily Technical Forecast

Based on the current price action, the direction of the gold market the rest of the session will be determined by trader reaction to the uptrending Gann angle at $1338.10.

A sustained move over $1338.10 will indicate buyers are supporting the market. If this creates enough upside momentum, we could see a test of a series of levels at $1347.10, $1349.80 and $1354.50. Overtaking $1354.50 could trigger a surge to the upside.

A sustained move under $1338.10 will signal the presence of sellers. This could trigger a move into $1329.10. This is the trigger point for a possible acceleration to the downside with the next targets a long-term uptrending Gann angle at $1308.70 and $1306.60.