The gold price has recovered but there is some traffic ahead
(Kitco News) -
Gold is having a mini-revival at the start of the week but it looks like it's too early to be popping champagne bottles. There are lots of important resistance levels in the way of a recovery on the 4-hour gold futures chart below.
The price bounced off the low volume node from the prominent support and resistance level between April and May. The $1800/oz level now looks like it is sigh and if retaken it could be a coup for the precious metal. Just at that level, there is another low volume node and as you can tell on this chart they are respected.
From a short-term perspective, the price might hang around the current VPOC (volume point of control) of the current distribution at $1777/oz. The next support is the current wave low at the purple line and then beyond that, there is another one at $1729.2/oz.
The real question is if this is now a bull or a bear market. The big clue will be if the consolidation low of $1677/oz breaks. On the upside, if the resistance zone at $1840/oz breaks this move lower could just be classified as a consolidation.
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