The gold price is heading to an important technical zone
(Kitco News) - Gold has been heavy this morning and the price is moving in on a confluence of levels that are below the $1800/oz area. The price looked weak at the end of last week and in the Asian session, the price moved around half a percent lower.
At around $1780/oz, this is the volume point of control. This represents the price on the chart where most contracts have changed hands. This kind of area often ends up being a sticking point for the price and it could be an important support.
Close to that zone is the current price wave low and a trendline that slopes upward from the low of the chart at $1677/oz. Obviously, the $1800/oz psychological level needs to be broken before the price heads to supports lower down.
On the topside, the first point of call is the current wave high at $1835/oz and then the previous consolidation low at $1859/oz. At the moment these upside levels are not in focus.