Gold futures fall higher on Tuesday after overcoming a previous setback. The market received support on June 5, 2020 at $ 1706.40. Good traders knew about that level because they chart the entire contract. The guys who are mapping the immediate sequel probably missed it. Anyway, let’s see what traders can do with the turnaround.
13:00 GMT April Comex gold trades $ 1727.00, up $ 4.00 or + 0.23%.
Gold traders closely monitor government returns today and the US dollar as they are strongly correlated with the price of gold metals. Central banks are also looking at their domestic returns and are ready to defend their monetary policy with aggressive intervention. The Fed does not seem to be so worried about rising interest rates.
Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart, but currently a potentially bullish final price reversal is being set up.
A trade through $ 1815.20 will change the main trend to up. Taking the intraday low to $ 1704.60 will signal a resumption of the downward trend.
Gold is currently testing the bottom of a larger retracement zone of $ 1787.30 to $ 171.70. If traders can build a support base within this zone, we can see the beginning of a strong rally.
The short term range is $ 1815.20 to $ 1704.60. Its 50% level of $ 1759.90 is the next upward target.
Daily turn chart Technical forecast
Given the long-term decline in price and time, the direction of the gold market today will be determined by the trader’s reaction to yesterday’s end of $ 1723.00.
A sustained pull above $ 1723.00 will indicate the presence of buyers. If this creates enough upward momentum, look for an intraday rise to $ 1759.90. Sellers may enter the first test at this level, but if buyers can overcome it, look for the rally to reach $ 1787.30. This is a potential trigger point for an upward acceleration.
A sustained pull below $ 1723.00 will signal the presence of sellers. This could lead to a reconsideration of the Fibonacci level of $ 1711.70, followed by the current low and on June 5, 2020 at $ 1704.60.
If $ 1704.60 fails, look for a potential acceleration to the disadvantage of the April 21, 2020 scalp of $ 1679.60.
Gold can rise quite quickly if the central banks work together to drive returns lower by buying huge amounts of their respective debt.
All gold has to do is break the pattern on the lower tops and lower bottoms and it can go to the competitions upwards.
Closer to $ 1723.00 will be a closing price reversal. If we confirm, we can see a correction of at least two to three days.
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