Gold futures are pretty flat heading into the US session
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(Kitco News) - It has been a pretty thin market in Europe heading into the US session. This is evident from the volume histogram at the bottom of the 4-hour gold futures chart below.
At the moment the price is attacking the previous wave low at $1859/oz and if it breaks there are a couple of support zones in the way. One on the higher timeframe close to $1850/oz and another lower down at $1820/oz at the next wave low.
General risk sentiment has been positive as the Dax and Eurostoxx trade higher. The FTSE 100 is underperforming due to some strength in the pound (GBP/USD 0.43%). The dollar basket is 0.11% lower but this has not seemed to help the yellow metal too much in the morning session.
If the support does hold the next target for the bulls could be the wave high at $1909/oz and if this is taken out it would create the second higher low higher high pattern on the 4-hour chart. The rejection 2 sessions ago at the highs was pretty strong so it would be a good coup if the bulls can make it happen. For now, the chart structure is bullish so let's see what the US market can bring leading into the Christmas holidays.