June Gold Higher as Momentum Shifts to Upside

Gold futures are up at the mid-session on Friday, putting them in a position to close higher for the week. The strength in the market suggests investors are less-concerned about an aggressive Federal Reserve raising rates in 50-basis point bunches than they are about inflation getting out of control.

At 16:00 GMT, June Comex gold is trading $1946.20, up $8.40 or +0.43%. The SPDR Gold Shares ETF (GLD) is at $181.26, up $0.92 or +0.51%.

The minutes of the Fed’s March meeting showed deepening concern among policymakers that inflation had broadened through the economy, with “many” participants prepared to raise interest rates in hefty 50-basis point increments in the next few meetings, However, gold buyers seem to have largely shrugged off the hawkish news, while focusing on rising costs or stubbornly strong inflation.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart, however, momentum is now shifting to the upside.

A trade through $1955.00 will change the main trend to up. A move through $1916.20 will signal a resumption of the downtrend.

The minor trend is up. It changed to up earlier today when buyers took out $1948.90. This shifted momentum to the upside.

The market is currently trading inside a pair of retracement levels at $1932.90 and $1958.70. On the downside, the support is a pair of retracement levels at $1908.10 and $1897.70.

Daily Swing Chart Technical Forecast

The direction of the June Comex gold futures contract into the close on Friday is likely to be determined by trader reaction to $1932.90.

Bullish Scenario

A sustained move over $1932.90 will indicate the presence of buyers. Taking out $1955.00 will change the main trend to up with $1958.70 the next target.

A trade through $1958.70 will indicate the buying is getting stronger. This could lead to a quick test of the main top at $1972.50.

A trade through $1972.50 will reaffirm the uptrend with $1987.60 to $2009.90 the primary target zone.

Bearish Scenario

A sustained move under $1932.90 will signal the presence of sellers. This will be a sign of weakness with $1916.20 the first target, followed by $1908.10 to $1897.70.