Overtaking $1951.00 Puts April Gold in Bullish Position
Gold futures are trading higher late in the session on Tuesday as money from the sale of riskier assets flowed into the asset. Money is also being moved into the traditional safe-havens – U.S. Treasurys, U.S. Dollar and Japanese Yen – as investors continued to assess the impact of Western sanctions against Russia over its invasion of Ukraine.
At 20:30 GMT, April Comex gold futures are trading $1942.90, up $42.20 or +2.22%. The SPDR Gold Shares ETF (GLD) is at $180.98, up $2.60 or +1.46%.
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Investors were also anticipating Federal Reserve Chair Jerome Powell’s testimony before the U.S. Congress on Wednesday and Thursday for more clarity on interest rate hikes amid the Ukraine tensions and soaring inflation.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. A trade through $1976.50 will reaffirm the uptrend. A move through $1821.10 will change the main trend to down.
The minor trend is also up. A trade through $1845.40 will change the minor trend to up. This will shift momentum to the downside.
The main range is $2117.10 to $1682.40. Gold is currently trading near the upper level of its retracement zone at $1899.80 to $1951.00.
The short-term range is $1780.60 to $1976.50. Its retracement zone at $1878.60 to $1855.40 is support.
The minor range is $1976.50 to $1878.60. Its pivot at $1927.60 is potential support.
Short-Term Outlook
The direction of April Comex gold into the close on Tuesday is likely to be determined by trader reaction to $1927.60.
Bullish Scenario
A sustained move over $1927.60 will indicate the presence of buyers. The first upside target is the long-term Fibonacci level at $1951.00. Overtaking this level will indicate the buying is getting stronger with $1976.50 the next major target.
Last week’s high at $1976.50 is a potential trigger point for an acceleration to the upside with the August 6, 2020 main top at $2117.00 the objective.
Bearish Scenario
A sustained move under $1927.60 will signal the presence of sellers. This could lead to a labored break with potential support targets lined up at $1899.80, $1878.60 and $1855.40.