Gold futures are inching lower late Tuesday after posting a two-sided trade earlier in the session. The precious metal is being capped by a firm U.S. Dollar, but seemingly underpinned by comments from U.S. Federal Reserve Chairman Jerome Powell, who told a Senate Banking Committee the U.S. economic recovery was “uneven and far from complete”.
At 19:42 GMT, April Comex gold is trading $1802.90, down $6.20 or -0.34%.
Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart. A trade through $1759.00 will signal a resumption of the downtrend. A move through $1856.60 will change the main trend to up.
On the downside, the nearest support is the long-term 50% level at $1787.30. This is followed by the minor 50% level at $1787.10. The two retracement levels form a support cluster.
The first short-term range is $1856.60 to $1759.00. The market is currently straddling its 50% level at $1807.80. The second short-term range is $1878.90 to $1759.00. Its retracement zone at $1819.00 to $1833.10 is a potential resistance area.
The direction of the April Comex gold market into the close is likely to be determined by trader reaction to the pivot at $1807.80.
A sustained move under $1807.80 will indicate the presence of sellers. This could trigger a late session break into the support cluster at $1787.30 to $1787.10. Aggressive counter-trend buyers could come in on the test of the support, hoping to form a potentially bullish secondary higher bottom.
A sustained move over $1807.80 will signal the presence of buyers. This could trigger a rally into the retracement zone resistance at $1819.00 to $1833.10. Since the main trend is down, sellers could come in to defend the trend.