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Gold Price Futures (GC) Technical Analysis – Sellers Taking Control, Could Collapse Under $1657.30

James Hyerczyk

Gold futures are talking a hit at the mid-session on Wednesday, pressured by a stronger U.S. Dollar and expectations that gold supplies will grow as bullion refineries resume operations, and on a gradual improvement in investor risk appetite as countries have begun to ease coronavirus restrictions.

Prices opened steady but fell after two of the world’s biggest gold refiners said they are restoring almost all operations. This ended six weeks of closures that disrupted global gold supply and helped drive prices in New York and London further apart than they have been in decades.

At 17:02 GMT, June Comex gold futures are trading $1688.30, down 25.80 or -1.62%.

Daily June Comex Gold

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through $1676.00 will signal a resumption of the downtrend. A move through the last swing bottom at $1666.20 will reaffirm the downtrend.

The main trend will change to up on a trade through $1737.00. This is followed by the next swing top at $1764.20.

The short-term range is $1788.80 to $1666.20. Its 50% level at $1727.50 is resistance.

The intermediate range is $1576.00 to $1788.80. Its retracement zone at $1682.40 to $1657.30 is support. This zone stopped sellers at $1666.20 on April 21 and $1676.00 on May 1.

The main range is $1453.00 to $1788.80. Its retracement zone at $1620.90 to $1581.30 is major support.

Daily Swing Chart Technical Forecast

Based on the early price action and the current price at $1688.30, the direction of the June Comex gold futures market into the close on Wednesday is likely to be determined by trader reaction to the 50% level at $1682.40.

Bearish Scenario

A sustained move under $1682.40 will indicate the presence of sellers. This could trigger a quick break into the minor bottom at $1676.00, followed by the main bottom at $1666.20 and the Fibonacci level at $1657.30.

Bullish Scenario

A sustained move over $1682.40 will signal the presence of counter-trend buyers. If the buying generates enough upside momentum then look for a possible test of the wall of resistance at $1726.00, $1727.50 and $1737.00.

This article was originally posted on FX Empire

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