Gold Price Futures (GC) Technical Analysis – Strengthens Over $1820.60, Weakens Under $1812.10

Gold futures are trading lower on Friday and in a position to erase all of this week’s gains. The market is being pressured by a stronger U.S. Dollar and firm Treasury yields. The greenback and benchmark 10-year U.S. Treasury yields ticked higher, reducing the appeal of the dollar-denominated precious metal. Trading was muted as many parts of Asia remained closed for the Lunar New Year holiday.

At 10:34 GMT, April Comex gold futures are trading $1819.00, down $7.80 or -0.43%.

The U.S. Dollar is trading higher against a basket of major currencies, helped by a weaker British Pound. The Sterling fell after official figures showed Britain’s coronavirus-ravaged economy slumped by 9.9% in 2020, the biggest annual crash in more than 300 years, but avoided heading back towards recession at the end of last year.

Daily April Comex Gold

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through $1784.60 will signal a resumption of the downtrend. A new main top was formed at $1856.60. Taking out this level will change the main trend to up.

The short-term range is $1878.90 to $1784.60. Its retracement zone at $1831.80 to $1842.90 is resistance.

The minor range is $1784.60 to $1856.60. Gold is currently testing its retracement zone at $1820.60 to $1812.10.

The major long-term support zone is bounded by $1787.30 to $1711.70.

Daily Swing Chart Technical Forecast

The early price action suggests the direction of the April Comex gold market will be determined by trader reaction to $1820.60 and $1812.10.

Bullish Scenario

A sustained move over $1820.60 will indicate the presence of buyers. If this creates enough upside momentum then look for a labored rally into $1831.80, followed by $1842.90 and the main top at $1856.60.

Bearish Scenario

A sustained move under $1812.10 will signal the presence of sellers. This is a potential trigger point for an acceleration to the downside with the next targets the major 50% level at $1787.30 and the main bottom at $1784.60.

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Published by

James Hyerczyk

James A. Hyerczyk has worked as a fundamental and technical financial market analyst since 1982. His technical work features the pattern, price and time analysis techniques of W.D. Gann.