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Gold Price Futures (GC) Technical Analysis – Still Holding Above Major Support Zone at $1610.50 to $1580.40

James Hyerczyk

Gold futures are being pressured by a stronger U.S. Dollar on Tuesday shortly after the cash market opening. Slightly better risk appetite the last several days is also weighing on prices after a surge early last week. ‘

The price action is also being influenced by U.S. economic data released early Tuesday. The S&P/CS Composite-20 HPI report came in lower than expected at 3.1%. Chicago PMI came in at 47.8, being the forecast but still indicating a contraction. The Conference Board’s Consumer Confidence Index was also better than forecast at 120.00. However, this was down from 132.60.

At 14:19 GMT, June Comex gold futures are trading $1626.90, down 16.00 or -0.97%.

Daily June Comex Gold

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through $1707.80 will change the main trend to up. A move through the last swing bottom at $1453.00 will signal a resumption of the downtrend.

The minor trend is also down. The new minor top is $1698.00.

The short-term range is $1707.80 to $1453.00. Its retracement zone at $1610.50 to $1580.40 is providing support. Based on the price action the last five days, it looks as if this area is controlling the direction of the market.

Daily Technical Forecast

Based on the early price action and the current price at $1626.90, the direction of the June Comex gold futures market the rest of the session on Tuesday is likely to be determined by trader reaction to the Fibonacci level at $1610.50.

Bullish Scenario

A sustained move over $1610.50 will indicate the presence of buyers. Overtaking the uptrending Gann angle at $1629.00 will indicate the buying is getting stronger. Taking out the downtrending Gann angle at $1643.80 could trigger an acceleration to the upside.

The best upside target angles drop in at $1675.80 and $1691.80 today. The latter is the last potential resistance angle before the tops at $1698.00 and $1707.80.

Bearish Scenario

A sustained move under $1610.50 will signal the presence of sellers. This could trigger a break into a support cluster at $1580.40 to $1579.80. The latter is a potential trigger point for an acceleration to the downside.

This article was originally posted on FX Empire