Gold futures are edging higher on Friday, eyeing its best weekly gain since May 2021, as investors scrambled for safe-haven assets after Russia attacked a nuclear power plant in Ukraine – the largest of its kind in Europe.
At 13:08 GMT, April Comex gold futures are trading $1943.30, up $7.40 or +0.38%. On Thursday, SPDR Gold Shares ETF (GLD) settled at $180.82, up $1.09 or +0.61%.
The market has also garnered support this week from comments from Federal Reserve Chairman Jerome Powell who suggested a 50-basis point rate hike at the central bank’s policy meeting on March 15-16 is not going to happen.
Traders are now awaiting the release of the U.S. Non-Farm Payrolls report for February. However, this may take a backseat to the overnight developments in Ukraine.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. A trade through $1976.50 will signal a resumption of the uptrend. A move through $1821.10 will change the main trend to down.
The minor trend is also up. A trade through $1845.40 will change the minor trend to down. This will shift momentum.
The main range is $2117.10 to $1682.40. The market is currently trading inside its retracement zone at $1899.80 to $1951.00.
The market is also trading on the strong side of a minor pivot at $1927.60.
The short-term range is $1780.60 to $1976.50. Its retracement zone at $1878.60 to $1855.40 is the key support area.
Daily Swing Chart Technical Forecast
The direction of the April Comex gold futures contract on Friday is likely to be determined by trader reaction to the long-term Fibonacci level at $1951.00.
Bullish Scenario
A sustained move over $1951.00 will indicate the presence of buyers. This could trigger a surge into the multi-month high at $1976.50. This price is a potential trigger point for an acceleration to the upside with the August 6, 2020 main top at $2117.10 the next major target price.
Bearish Scenario
A sustained move under $1927.60 will signal the presence of sellers. This could lead to a labored break with potential support targets coming in at $1899.80, $1878.60 and $1855.40. The latter is a potential trigger point for an acceleration to the downside.
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This article was originally posted on FX Empire
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