June Gold Strengthens Over $1932.90, Weakens Under $1928.00

Gold futures are inching lower on below average volume early Monday as traders assess the impact of the Ukraine crisis, which is showing no signs of abatement, on demand for safe-haven assets. Limiting gains is the U.S. Federal Reserve’s plan of aggressive measures to combat inflation.

At 07:05 GMT, June Comex gold futures are trading $1927.10, down $6.80 or -0.35%. On Friday, the SPDR Gold Shares ETF (GLD) settled at $179.26, down $1.63 or -0.90%.

Gold traders are showing little reaction to the news that Ukraine on Monday rejected Russian calls to surrender the port city of Mariupol, where residents are besieged with little food, water and power and fierce fighting showed little sign of easing, according to Reuters.

Perhaps putting a cap on the precious metal were comments from two of the Fed’s most hawkish policymakers on Friday. Both called for the central bank to take more aggressive steps to fight inflation.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through $1882.00 will change the main trend to down. A move through $2082.00 will signal a resumption of the uptrend.

The minor trend is also up. A trade through $1900.40 will change the minor trend to down. This will shift momentum to the downside. A trade through the minor top at $1955.60 will indicate strong buyers.

The contract range is $2122.70 to $1693.40. Its retracement zone is $1908.10 to $1958.70.

The main range is $1783.80 to $2082.00. Its retracement zone is $1932.90 to $1897.70.

The two zone combine to form a support cluster at $1908.10 to $1897.70.

Daily Swing Chart Technical Forecast

The direction of the June Comex gold futures contract on Monday is likely to be determined by trader reaction to $1928.00.

Bullish Scenario

A sustained move over $1928.00 will indicate the presence of buyers. Overcoming the 50% level at $1932.90 will indicate the buying is getting stronger. This could trigger a surge into the minor top at $1955.60, followed by the long-term Fibonacci level at $1958.70.

The Fib level at $1958.70 is a potential trigger point for an acceleration to the upside with $1991.20 – $2012.60 the next potential target area.

Bearish Scenario

A sustained move under $1928.00 will signal the presence of sellers. If this creates enough downside momentum then look for a break into the support cluster at $1908.10 to $1897.70.

A trade through $1900.40 will change the minor trend to down. A move through $1882.00 will change the main trend to down. This could trigger an acceleration to the downside.