Gold Price Futures (GC) Technical Analysis – Treasury Yield Plunge Could Trigger Late Session Price Surge
Gold futures are trading higher on Friday, putting the market in a position to post its second consecutive weekly close. The rally is being fueled by a steep drop in U.S. Treasury yields. This move is making the U.S. Dollar a less-desirable asset, which is driving up demand for dollar-denominated gold futures.
At 18:40 GMT, April Comex gold is trading $1333.10, up $5.30 or +0.40%.
Your capital is at risk
Daily Technical Analysis
The main trend is up according to the daily swing chart. A trade through $1349.80 will signal a resumption of the uptrend. The main trend will change to down on a trade through $1304.70.
The short-term range is $1304.70 to $1349.80. Its retracement zone at $1327.30 to $1321.90 is providing support.
Daily Technical Forecast
Based on the early price action, the direction of the April Comex gold futures contract into the close is likely to be determined by trader reaction to the short-term uptrending Gann angle at $1324.70.
Bullish Scenario
A sustained move over $1324.70 will indicate the presence of buyers. Overcoming the 50% level at $1327.30 will indicate the buying is getting stronger. If this generates enough upside momentum then look for a possible drive into a long-term downtrending Gann angle at $1337.20.
Overtaking $1337.20 will indicate the buying is getting stronger. The next target is a steep uptrending Gann angle at $1344.70. Overtaking this angle will put the gold market in a bullish position with $1349.80 the next major upside target.
Bearish Scenario
The inability to overcome $1337.20 will be the first sign of sellers. Crossing under $1327.30 will indicate the selling is getting stronger. This could lead to a retest of the uptrending Gann angle that provided support earlier today at $1324.70. If this fails then look for prices to retreat into $1321.90 then $1321.50.