Gold Silver Reports – Based on the current price action, the direction of the gold market the rest of the session is likely to be determined by trader reaction to the steep uptrending Gann angle at $1254.30.
February Comex Gold futures are trading higher on Thursday. Buyers are trying to continue the rally which was triggered on Wednesday when the Fed issued its “dovish” forecast for interest rates. Although the central bank raised its benchmark rate 25 basis points as expected, it didn’t change the forecast for three rate hikes in 2018, disappointing investors. This triggered a sell-off in the U.S. Dollar and a subsequent short-covering rally in dollar-denominated gold.
Daily Technical Analysis
The main trend is down according to the daily swing chart. A trade through $1238.30 will signal a resumption of the downtrend. The market is far from changing the trend to up, but there is room to the upside to complete a retracement of its last sell-off.
The short-term range is $1303.40 to $1238.30. Its retracement zone and initial upside target is $1270.90 to $1278.50. The major long-term 50% to 61.8% retracement zone is $1272.30 to $1290.20.
Combining the two retracement zones forms a resistance cluster at $1270.90 to $1272.30. Since the main trend is down, a test of this zone is likely to draw the attention of short-sellers.
Daily Technical Forecast
Based on the current price action, the direction of the gold market the rest of the session is likely to be determined by trader reaction to the steep uptrending Gann angle at $1254.30.
A sustained move over $1254.30 will indicate the presence of buyers. If this move creates enough upside momentum, we could see a rally into the resistance cluster at $1270.90 to $1272.30.
Crossing to the weak side of the angle at $1254.30 and sustaining the move could trigger an acceleration into the next uptrending Gann angle at $1246.30.
Today’s market will be determined by momentum and whether buyers will continue to hold gold over $1254.30. – Neal Bhai Reports