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The gold price looks to be consolidating on the hourly chart

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(Kitco News) - After starting the EU session on a positive note gold has pulled back during the session. The yellow metal is still trading at a relatively high level at $1880.4/oz and remains up for the day. The price is in a full consolidation phase at the current level and the resistance at $1891.3/oz looks firm from an intraday standpoint. If the bulls are to keep charge of this market surely this level would need to be broken. 

On the downside, there are lots of support levels to look out for. At this current distribution, the $1869.5/oz level is the point where most contracts have been traded. If the price moves below there it could indicate more danger is to come. Below that the green support zone at $1846.3/oz is a very important level and if there is to be a firm retracement this looks like a strong area. Lastly, on the whole chart, most contracts have been traded at $1835.9/oz so this cannot be ignored.

All in all, the bulls are still firmly in charge but the momentum does look like it's getting thinner. The volume histograms at the bottom of the chart are small but crucially the selling candles have more volume than the buying ones. 


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