Gold Price Futures (GC) Technical Analysis – January 25, 2019 Forecast
Gold futures are trading higher Friday, helped by a weaker U.S. Dollar and concerns that a prolonged U.S. government shutdown could weaken U.S. first quarter GDP. Limiting gains are hope that next week’s higher-level trade talks between the U.S. and China will lead to a trade agreement before March 1.
At 0802 GMT, April Comex gold futures are trading $1289.40, up $3.50 or +0.27%.
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Daily Technical Analysis
The main trend is up according to the daily swing chart, however, momentum is trending lower. A trade through $1306.50 will signal a resumption of the uptrend. A move through $1242.50 will change the main trend to down.
The minor trend is down. A trade through $1292.10 will change the minor trend to up. This will also shift momentum to the upside. A trade through $1281.50 will indicate the selling is getting stronger.
On the upside, the first 50% target comes in at $1293.60. Overcoming this level will indicate the buying is getting stronger.
The main range is $1242.50 to $1306.50. Its 50% level at $1274.50 is the first downside target. Since the main trend is up, buyers could come in on a test of this level. If it fails then the selling could possibly extend into the next 50% level at $1264.70.
Daily Technical Forecast
Bullish Scenario
The early price action suggests the presence of buyers. This could drive the market into a series of levels. The first target is the downtrending Gann angle at $1292.60. This is followed by the minor top at $1292.10.
Taking out $1292.10 will change the minor trend to up with the main 50% level at $1293.60 the next target. The buying will start getting stronger over this level with the next uptrending target angle coming in at 1296.50.
Overtaking $1296.50 will put the market in a bullish position with $1299.50 the next downtrending target angle.
Bearish Scenario
On the downside, taking out $1281.50 will indicate the presence of sellers. This could drive the market into a downtrending Gann angle at $1278.50.
Crossing to the weak side of the angle at $1278.50 will put gold in a bearish position with the next target the 50% level at $1274.50. Look for buyers on the first test of this level.