Gold Price Futures Technicals: Support and Resistance


Just in: Gold rose more than 1% Wednesday as fears over a worsening coronavirus pandemic triggered a flight to safety, with expectations of further monetary easing by central banks adding support.

Spot gold was up 1.4% at 1,592.83 per ounce by 0730 GMT, having slumped 3.1% in the prior session on a strong USD.

US gold futures gained 0.5% at 1,604.50.

Investors may be shifting to gold for safety, as the rebound spurred by President Trump’s remarks that the next 2 weeks of the pandemic could be painful for the United States.

Gold futures were pressured by a stronger USD Tuesday shortly after the cash market opening. Slightly better risk appetite the last several days is also weighing on prices after a surge early last week.

The price action was influenced by US economic data released early Tuesday.

The S&P/CS Composite-20 HPI report came in lower than expected at 3.1%.

Chicago PMI came in at 47.8, being the forecast but still indicating a contraction.

The Conference Board’s Consumer Confidence Index was also better than forecast at 120.00. However, this was down from 132.60.

April COMEX gold futures are trading 1598, + 14.60 as I write

The Technicals are based on the COMEX June futures.

COMEX June Gold Futures

Daily Technicals

The main trend is down according to the daily swing chart. A trade through 1707.80 will change the main trend to up. A move through the last swing bottom at 1453.00 will signal a resumption of the downtrend.

The minor trend is also down. The new minor top is 1698.00.

The short-term range is 1707.80 to 1453.00. Its retracement zone at 1610.50 to 1580.40 is providing support. Based on the price action the last 5 days, it looks as if this area is controlling the direction of the market.

Daily Technical Forecast

Based on the early price action and the current price at 1626.90, the direction of the June COMEX gold futures market the rest of the session Tuesday is likely to be determined by trader reaction to the Fibo mark at 1610.50.

Bullish Scenario: A sustained move over 1610.50 will indicate the presence of buyers. Overtaking the uptrending Gann angle at 1629.00 will indicate the buying is getting stronger. Taking out the downtrending Gann angle at 1643.80 could trigger an acceleration to the upside.

The best Northside target angles drop in at 1675.80 and 1691.80 Tuesday. The latter is the last potential resistance angle before the tops at 1698.00 and 1707.80.

Bearish Scenario: A sustained move under 1610.50 will signal the presence of sellers. This could trigger a break into a support cluster at 1580.40 to 1579.80. The latter is a potential trigger point for an acceleration to the Southside.

Have a healthy day, stay home!

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