The gold price is edging towards the next resistance
(Kitco News) - Gold has pushed higher Fed Chair Powell's speech last week. The price is now heading towards the consolidation high at $1837.5/oz (red zone) which it has bounced off of on three occasions recently.
If the price is to move beyond that level, there is lots of traffic currently in the way. The downward sloping trendline marked in grey is very close by. Beyond that, the blue shaded area at $1919.2/oz could be a tricky one for the bulls.
On the downside, there are some good support areas. The main consolidation low from the higher timeframes comes at the purple shaded area ($1670/oz). More near term, the red horizontal line represents the volume point of control and this is where the most contracts have been traded within the timeframe on the chart. This has been a very sticky zone for the gold price.
Overall, the market is still a sideways one. The recent price recovery from the $1677.9/oz spike down has been an encouraging one. A break above $1837.5/oz would create a new wave high and inspire more confidence in the move up.