Gold Price Futures (GC) Technical Analysis – Key Pivot into Close $1342.70

Gold futures are higher late Friday during the extended trading period. However, it’s trading near the mid-point of the session after hitting its highest level since February 21 earlier in the day. Lower Treasury yields led to a weaker U.S. Dollar, and a weaker dollar drove up demand for dollar-denominated gold.

The catalyst behind the price action was a weaker-than-expected U.S. Non-Farm Payrolls report, which raised the chances of an earlier than expected U.S. Federal Reserve rate cut.

At 19:02 GMT, August Comex gold futures are trading $1344.50, up $1.80 or +0.13%.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through today’s intraday high at $1352.70 will signal a resumption of the uptrend. This could lead to an eventual test of the next main top at $1361.50. The rally could extend into main tops at $1405.90 and $1413.30 over the near-term.

The market is in no position to change the main trend to down, but due to the prolonged move up in terms of price and time, it is ripe for a potentially bearish closing price reversal top.

The main range or contract range is $1413.30 to $1202.00. Its 50% to 61.8% retracement zone is $1307.70 to $1332.60. This zone is controlling the longer-term direction of the market. Trading above it will help maintain the strong upside bias. Longer-term traders should consider this zone support.

Daily Technical Forecast

Based on the current price at $1344.50 and the earlier price action, the direction of the August Comex gold futures contract is likely to be determined by trader reaction to the downtrending Gann angle at $1342.70.

Bullish Scenario

A sustained move over $1342.70 will indicate the presence of buyers late in the session. If they’re able to create enough upside momentum we could see a drive into the downtrending Gann angle at $1352.10, followed by today’s intraday high at $1352.70.

Bearish Scenario

A sustained move under $1342.70 will signal the presence of sellers. If this move creates enough downside momentum then look for the selling to possibly extend into the major Fibonacci level at $1332.60, followed by a steep uptrending Gann angle at $1322.60.