Gold Price Futures (GC) Technical Analysis – Trader Reaction to $1777.10 Pivot Sets the Tone

Gold futures are trading flat to lower on Wednesday as concerns over the possibility of higher U.S. interest rates, following hawkish comments from U.S. Treasury Secretary Janet Yellen, drove the U.S. Dollar higher.

U.S. Treasury Secretary Janet Yellen said on Tuesday she sees no inflation problem brewing, downplaying earlier comments that rate hikes may be needed to stop the economy from overheating as President Joe Biden’s spending plans boost growth.

At 08:41 GMT, June Comex gold futures are trading $1774.80, down $1.20 or -0.07%.

Daily June Comex Gold

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through $1799.50 will signal a resumption of the uptrend. A move through $1754.60 will change the main trend to down.

The minor range is $1754.60 to $1799.50. The market is currently straddling its 50% level or pivot at $1777.10.

On the upside, the resistance is the long-term 50% level at $1788.50.

On the downside, the first potential support is a 50% level at $1761.40, followed by a second 50% level at $1738.40 and a long-term Fibonacci level at $1711.90.

Daily Swing Chart Technical Forecast

The direction of the June Comex gold futures contract is likely to be determined by trader reaction to the pivot at $1777.10.

Bearish Scenario

A sustained move under $1777.10 will indicate the presence of sellers. If this move creates enough downside momentum then look for the selling to possibly extend into the 50% level at $1761.40, followed closely by the main bottom at $1754.60.

Taking out $1754.60 will change the main trend to down. This could trigger an acceleration into another 50% level at $1738.40.

Bullish Scenario

A sustained move over $1777.10 will signal the presence of buyers. The first upside target is the long-term 50% level at $1788.50. Overtaking this level could drive the market into $1799.50. This price is a potential trigger point for an acceleration to the upside with $1817.60 the next potential upside target.

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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.