June Comex Gold Rangebound While Traders Track Headlines

Comex gold futures are edging lower on Thursday after posting a strong rebound rally the previous session. Nonetheless, the precious metal is poised to post its biggest quarterly gain since September 2020.

Even with the Federal Reserve hiking rates for the first time since 2018 during the quarter and pledging to be aggressive in its attempt to rein in runaway inflation, gold still managed to post solid quarterly gains on the back of the Russia-Ukraine conflict and soaring inflation.

At 06:37 GMT, June Comex gold is trading $1930.10, down $8.90 or -0.46%. On Wednesday, SPDR Gold Shares ETF (GLD) settled at $180.55, up $1.41 or +0.79%.

June Comex gold has been trading inside a long-term retracement zone for a couple of weeks. The recent price action suggests investor indecision and impending volatility. Geopolitical risk and inflation have been underpinning prices, while rising interest rates have helped cap gains.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 1893.20 will signal a resumption of the downtrend. A move through $1972.50 will change the main trend to up.

The long-term range is the contract range at $2122.70 to $1693.40. The market is currently trading inside its retracement zone at $1908.10 to $1958.70.

The main range is $1783.80 to $2082.00. Its retracement zone at $1932.90 to $1897.70 is straddling the long-term retracement zone.

The short-term range is $2082.00 to $1893.20. If the main trend changes to up then its retracement zone at $1987.60 to $2009.90 will become the primary upside target.

Daily Swing Chart Technical Forecast

The direction of the June Comex gold futures contract on Thursday is likely to be determined by trader reaction to the 50% level at $1932.90.

Bearish Scenario

A sustained move under $1932.90 will indicate the presence of sellers. If this move creates enough downside momentum then look for the selling to possible extend into a 50% level at $1908.10, a Fibonacci level at $1897.70 and a minor bottom at $1893.20.

Taking out $1893.20 will indicate the selling is getting stronger with the main bottom at $1882.00 the next target. Taking out this level could trigger an acceleration to the downside.

Bullish Scenario

A sustained move over $1932.90 will signal the presence of buyers. This could trigger an acceleration into the major Fibonacci level at $1958.70. Look for sellers on the first test of this level.

Overcoming $1958.70 could lead to a test of $1972.50. Overtaking this level will change the main trend to up with $1987.60 to $2009.90 the next key target.