Gold is trading higher, but struggling to take out the high of the week. The market is being supported by safe-haven buying related to lower demand for higher-risk assets and a steep plunge in U.S. Treasury yields. However, the stronger U.S. Dollar is helping to limited foreign demand for the dollar-denominated asset. Signs of a weakening U.S. economy are also underpinning prices. Earlier today, reports showed weaker-than-expected U.S. retail sales, capacity utilization and industrial production.
At 13:45 GMT, June Comex gold futures are trading $1300.80, up $4.50 or +0.35%.
Daily Technical Analysis
The main trend is up according to the daily swing chart. However, yesterday’s closing price reversal top and today’s confirmation of the chart pattern is helping to limit gains.
Taking out $1304.20 will negate the closing price reversal top and signal a resumption of the uptrend. The next main top comes in at $1314.70.
The main range is $1330.80 to $1267.30. Its retracement zone at $1299.10 to $1306.50 is currently being tested. This zone is controlling the near-term direction of the market.
The short-term range is $1314.70 to $1267.30. Its retracement zone at $1296.80 to $1291.30 is new support.
Daily Technical Forecast
Based on the current price at $1300.80, buyers are facing a wall of resistance at $1302.70, $1303.30, $1304.20 and $1306.50. Overtaking this levels will indicate the buying is getting stronger. Taking out $1306.50 could trigger an acceleration to the upside with the next targets a downtrending Gann angle at $1312.80 and a main top at $1314.70.
If buyers can take out $1314.70 then look for another acceleration to the upside with targets coming in at $1321.80, followed by $1330.80.
The inability to overtake the resistance will signal the presence of sellers. This could drive the gold market back into $1299.10 then $1296.00. Taking out the latter could drive the market into the 50% level at $1291.30, followed by an uptrending Gann angle at $1285.30.
This article was originally posted on FX Empire
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