Gold Price Futures (GC) Technical Analysis – Chart Pattern Suggests Investor Indecision, Impending Volatility

Gold futures are trading flat early Tuesday while trading inside last Thursday’s wide range for a third session. The price action suggests investor indecision and impending volatility. Gains are being capped by a stronger U.S. Dollar, while being underpinned by a dip in U.S. Treasury yields.

At 08:34 GMT, June Comex gold futures are trading $1740.20, down $0.20 or -0.01%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through $1676.20 will signal a resumption of the downtrend. The main trend will change to up on a move through $1817.60.

The minor trend is also down. A trade through $1756.00 will change the minor trend to up. This will also shift momentum to the upside. A trade through $1719.10 will signal a resumption of the minor trend.

The market is currently trading inside a major retracement zone at $1788.50 to $1711.90. This zone is controlling the longer-term direction of the market.

The short-term range is $1817.60 to $1676.20. Its retracement zone at $1746.90 to $1763.60 is resistance, but also a potential trigger point for an acceleration to the upside.

Daily Swing Chart Technical Forecast

The recent price action suggests the direction of the June Comex gold market will be determined by trader reaction to $1746.90.

Bearish Scenario

A sustained move under $1746.90 will indicate the presence of sellers. The first downside target is last week’s low at $1719.10, followed by the long-term Fibonacci level at $1711.90. This is a potential trigger point for an acceleration to the downside.

Bullish Scenario

A sustained move over $1746.90 will signal the presence of buyers. This could trigger a quick surge into $1756.00 and $1763.60.

The rally could pick up some steam if buyers can overcome $1763.60. This would make $1788.50 the next key upside target. This is a potential trigger point for an acceleration to the upside.

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