This week's gold price action review
(Kitco News) - This week gold futures have traded within a $34.7 range between a high of $1819.5/oz and $1784.8/oz. It certainly looks like gold will finish the week positive but there has been a rejection of higher levels this week.
On the volume histogram at the bottom of the chart, it is fairly easy to notice that the bigger volume spikes come from the selling candles when the price has been near or above $1815/oz. It will be interesting to watch this level in the coming sessions especially as the price seems to be consolidating around the psychological $1800/oz area.
The volume profile on the chart is showing that most contracts have been traded at $1806/oz. The VPOC (volume point of control) has clearly been a pivot level and the price is once again testing it at the time of writing. $1797/oz seems to be a big intraday support level as it has been tested eight times to good effect.
On the topside, the most prominent resistance close to the current price level is $1809.3/oz. This is the top of the current volume profile value area and the price has reacted at the level four times. At the moment there is no clearly developed trend in this market after hitting the weekly high the price dropped and moved sideways and the price is firmly at the $1800/oz area.