Gold Price Futures (GC) Technical Analysis – Strengthens Over $1899.20, Weakens Under $1886.80

Gold futures are inching lower late in the session on Tuesday as a firmer U.S. Dollar countered a drop in U.S. Treasury yields as investors looked ahead to U.S. inflation data that could influence the Federal Reserve’s timeline to taper monetary support.

At 19:02 GMT, August Comex gold futures are trading $1896.10, down $2.70 or -0.14%.

The two-sided trade the past several sessions indicates that gold traders may have mixed feelings about the direction of the Fed ahead of next week’s U.S. Federal Reserve monetary policy meeting on June 15-16.

Stronger-than-expected consumer inflation data on Thursday could drive fears that central bank policymakers will begin a move to scale back its accommodative monetary policy, driving gold prices lower.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart, however, momentum has been trending higher since Friday’s closing price reversal bottom.

A trade through $1919.20 will change the main trend to up. A move through $1855.60 will negate the closing price reversal bottom and signal a resumption of the downtrend.

On the upside, the near-term resistance is $1899.20. The longer-term resistance is $1899.20 to $1951.30.

The minor range is $1919.20 to $1855.60. Its 50% level at $1886.80 is support.

Short-term 50% support comes in at $1865.00 and $1838.00.

Daily Swing Chart Technical Forecast

The direction of the August Comex gold market into the close on Tuesday is likely to be determined by trader reaction to $1899.20

Bullish Scenario

A sustained move over $1899.20 will indicate the presence of buyers. If this creates enough upside momentum then look for a surge into $1919.20. This is a potential trigger point for an acceleration to the upside with $1951.30 the next likely upside target.

Bearish Scenario

A sustained move under $1899.20 will signal the presence of sellers. The first downside target is $1886.80. Taking out this level could trigger an acceleration to the downside with the next targets coming in at $1865.00 and $1855.60.