Gold Price Futures (GC) Technical Analysis – Bullish Tone Over $1746.90 with $1759.40, $1767.60 Next Targets

Gold futures are trading flat early Wednesday after bouncing off minor support the previous session following a report that showed a sharp rise in U.S. inflation data. The news didnt surprise investors who had been anticipating a large number.

This encouraged investors to buy government bonds, driving down Treasury yields and consequently demand for the U.S. Dollar. As the greenback weakened, foreign demand for dollar-denominated gold rose.

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At 08:32 GMT, June Comex gold futures are trading $1746.80, down $0.80 or -0.05%.

U.S. consumer prices rose by the most in more than 8-1/2 years in March, kicking off what most economists expect will be a brief period of higher inflation.

[fx-image src=/2021/04/Daily-June-Comex-Gold-6.jpg data-zoom-target=https://responsive.fxempire.com/cdn/n/n/_fxempire_/2021/04/Daily-June-Comex-Gold-6.jpg originalWidth=1920 ratio=1.99]Daily June Comex GoldDaily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through $1759.40 will signal a resumption of the uptrend.

A new secondary higher bottom was formed at $1723.20. A move through this level will change the main trend to down.

The first short-term range is $1677.30 to $1759.40. Its 50% level at $1718.40 is support.

The second support is the long-term Fibonacci level at $1711.90.

Another short-term range is $1817.60 to $1676.20. Gold is currently straddling its 50% level at $1746.90.

The main range is $1858.90 to $1676.20. Its 50% level at $1767.60 is another potential upside target.

The major resistance is the long-term 50% level at $1788.50.

[fx-article-ad]Daily Swing Chart Technical Forecast

The direction of the June Comex gold market on Wednesday is likely to be determined by trader reaction to $1746.90.

Bullish Scenario

A sustained move over $1746.90 will indicate the presence of buyers. If this move generates enough upside momentum then look for the buying to possibly extend into the main top at $1759.40, followed by $1767.60. This is a potential trigger point for an acceleration to the upside with $1788.50 the next likely target.

Bearish Scenario

A sustained move under $1746.90 will signal the presence of sellers. If this move creates enough downside momentum then look for a break into the main bottom at $1723.20, followed by the short-term 50% level at $1718.40 and the major Fibonacci level at $1711.90.

The Fib level at $1711.90 is a potential trigger point for an acceleration to the downside with $1677.30 the next major target.

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