U.S. Markets closed
  • S&P 500

    4,185.47
    +15.05 (+0.36%)
     
  • Dow 30

    34,200.67
    +164.68 (+0.48%)
     
  • Nasdaq

    14,052.34
    +13.58 (+0.10%)
     
  • Russell 2000

    2,262.67
    +5.60 (+0.25%)
     
  • Crude Oil

    63.07
    -0.39 (-0.61%)
     
  • Gold

    1,777.30
    +10.50 (+0.59%)
     
  • Silver

    26.04
    +0.08 (+0.29%)
     
  • EUR/USD

    1.1980
    +0.0004 (+0.0359%)
     
  • 10-Yr Bond

    1.5730
    +0.0430 (+2.81%)
     
  • Vix

    16.25
    -0.32 (-1.93%)
     
  • GBP/USD

    1.3840
    +0.0056 (+0.4069%)
     
  • USD/JPY

    108.7830
    +0.0670 (+0.0616%)
     
  • BTC-USD

    61,266.54
    -755.46 (-1.22%)
     
  • CMC Crypto 200

    1,398.97
    +7.26 (+0.52%)
     
  • FTSE 100

    7,019.53
    +36.03 (+0.52%)
     
  • Nikkei 225

    29,683.37
    +40.68 (+0.14%)
     

Gold Price Futures (GC) Technical Analysis – Weakens Under $1711.70, Strengthens Over $1787.30

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
James Hyerczyk
·2 min read
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Gold futures are nudging higher on Monday, rebounding from a sharp loss the previous session that drove the precious metal into an eight-month low. The catalysts behind the move are a dip in U.S. Treasury yields and a weaker U.S. Dollar.

Traders are keeping a close watch on global bond yields because of a deepening divide between traders and central bank policy makers over the pace of the economic recovery. Policy makers fear the so-called reflation trade, already rippling through all markets, could seep into economies that have yet to rebound from the coronavirus shock.

At 09:52 GMT, April Comex gold futures are trading $1744.80, up $16.00 or +0.93%.

Daily April Comex Gold
Daily April Comex Gold

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through $1714.90 will signal a resumption of the downtrend. A trade through the June 5, 2020 main bottom at $1704.60 will reaffirm the downtrend. The main trend will change to up on a trade through the last main top at $1815.20.

Gold is currently trading inside a long-term retracement zone at $1787.30 to $1711.70. Last week’s low at $1714.90 came in just above the major Fibonacci level.

The minor range is $1815.20 to $1714.90. Its 50% level at $1765.10 is the first upside target.

Daily Swing Chart Technical Forecast

The short-term direction of the gold market is likely to be determined by trader reaction to $1765.10.

The longer-term direction is likely to be determined by trader reaction to the Fibonacci level at $1711.70 and the 50% level at $1787.30.

Bullish Scenario

A sustained move over $1787.30 will indicate the presence of buyers. This could trigger a surge into the main top at $1815.20. Taking out this level will change the main trend to up.

Bearish Scenario

A sustained move under $1711.70 will signal the presence of buyers. Taking out $1704.60 will reaffirm the downtrend and could trigger a further decline over the near-term to $1769.60.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire

More From FXEMPIRE: