Gold futures are trading lower on Thursday in reaction to a stronger U.S. Dollar. Traders are now waiting for the release of the European Central Bank interest rate and monetary policy decisions. The ECB is widely expected to leave its benchmark interest rate unchanged. ECB President Mario Draghi is also scheduled to hold a press conference. If he’s dovish in his assessment of the Euro Zone economy then look for the Euro to plunge. This would drive up the U.S. Dollar Index and likely put pressure on dollar-denominated gold.
At 1244 GMT, April Comex gold is trading $1284.20, down 6.00 or -0.46%.
Daily Technical Analysis
The main trend is up according to the daily swing chart, however, momentum is trending lower. A trade through $1283.00 will take out a closing price reversal bottom. This will also indicate the selling is getting stronger.
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.
The key 50% resistance level is $1293.60. The first 50% support level is $1274.50. Additional 50% support levels come in at $1264.70 and $1257.90.
Daily Technical Forecast
Based on the current price at $1284.20, the direction of the April Comex gold market the rest of the session is likely to be determined by trader reaction to $1283.00.
A sustained move over $1283.00 will indicate the return of buyers. If this creates enough upside momentum to reverse today’s selling pressure, then look for a possible drive into the resistance cluster at $1293.50 to $1293.60. Sellers could come in on the first test of this area. Prices could soar over $1294.50.
Taking out $1283.00 could drive the market into the downtrending Gann angle at $1280.50. Crossing to the weak side of this angle will put the market in a bearish position. This could extend the break into $1274.50, followed by an uptrending Gann angle at $1268.50, followed by $1264.70.