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Gold futures bounce off a nice technical support area

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(Kitco News) - Last week it was highlighted that the consolidation low near $1767.2/oz was an important support level to watch. Since then, the price of the yellow metal has bounced and moved back to the upside, but the pressure is still on.

Looking ahead, the market could still be keeping an eye on the zone as the volume on the retracement has not been too impressive, to say the least. The spikes in volume on the moves lower have been much more prominent in recent times. Obviously, this could change in an instant and we should keep an eye on the volume if the price does move closer to the next mean value area of $1814/oz.

On the upside, the next resistance zones are the aforementioned $1814/oz area and $1858.9/oz. The latter was a very strong previous support turned resistance from earlier on in the year. Still, it was used to significant effect as a support level in Aug-Sept 2020.

The outlook for the metal is still bearish for now as the market continues to make lower highs and lower lows, but a break of $1857/oz is where that could change. On the downside, if there is to be a break of the current support, $1676/oz is next up.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.