June Comex Gold futures are trading higher shortly before the regular session opening. Traders are reacting to a weaker U.S. Dollar and lower U.S. equity prices. The catalyst behind the price action is the retaliation by China to the U.S. tariffs on steel and aluminum.
Daily Technical Analysis
The main trend is down according to the daily swing chart. However, momentum has been trending lower since the formation of a closing price reversal top at $1362.60 on March 27 and the subsequent confirmation.
A trade through $1312.40 will change the main trend to down. A move through $1362.60 will negate the closing price reversal top and signal a resumption of the uptrend.
The minor trend is down. However, today’s price action has helped form a new minor bottom at $1325.40.
The main range is $1247.20 to $1375.50. Its retracement zone at $1311.40 to $1296.20 is support.
Daily Technical Forecast
Based on the early price action, the direction of the gold market today is likely to be determined by trader reaction to the downtrending Gann angle at $1330.50.
A sustained move over $1330.50 will indicate the presence of buyers. If this move generates enough upside momentum then we could see a rally into the next downtrending Gann angle at $1353.00 today.
A sustained move under $1330.50 will signal the presence of sellers. This could drive the market through the minor bottom at $1325.40 and into the long-term uptrending Gann angle at $1321.20. If this Gann angle fails, we could see an acceleration into the main bottom at $1312.40 and the main 50% level at $1311.40.
Watch the price action and read the order flow at $1330.50. Trader reaction to this angle will tell us if the buyers or sellers are in control.