Gold futures rallied early Thursday morning and looks poised to challenge the recent major top and potential trigger point to accelerate the upside. All it takes to make this market skyrocket is another drop in Treasury and US dollar yields.
The catalyst for such a move could be the weekly report on initial claims for unemployment benefits in the United States, which is due to be published at 12:30 GMT. It is expected to reach 682K, up from the 719K previously reported.
Technical analysis of the daily fluctuation chart
According to the daily fluctuation chart, the main trend is downtrend. However, momentum has been on an upward trend since the bottom of the reversal of the closing price on March 31st.
The underlying trend will change to an uptrend on a trade across $ 1,756.00, while a move through $ 1,677.30 will signal a resumption of the downtrend.
On the other hand, the immediate support is in the range from $ 1,712.00 to $ 1,711.90.
The short-term range is $ 1,817.60 to $ 1,676.20. Its 50% level at $ 1,746.90 is currently being tested.
The main range is $ 1,858.90 to $ 1,676.20. Its 50% level at $ 1,767.60 is another potential upside target.
Key resistance and long-term 50% level at $ 1,788.50. This controls the short-term direction of the market.
Daily Swing Chart Technical Forecast
The direction of the June Comex gold market on Thursday is likely to be driven by a trader’s 50% response at $ 1,746.90.
A sustained move above $ 1,746.90 will indicate buyers’ presence. The next target is the major top at $ 1,756.00. Exit from this level will change the main trend to an uptrend and may cause a spike to $ 1,767.60. This is another potential trigger to accelerate to $ 1,788.50.
A sustained move below $ 1,746.90 would signal the presence of sellers. If this move generates sufficient downside momentum, then look for selling to possibly extend to a potential support cluster at $ 1,712.00 to $ 1,711.90.
For all of today’s economic events, check out our economic calendar.