The gold price is stuck in technical no man's land
(Kitco News) - Looking at the gold price on the daily chart it seems investors are now in a fine balance waiting for more information before making a firm decision on direction. Today the gold price headed into the EU session slightly higher but as the session continues there was no commitment from the bulls.
The technical analysis, the price is now in a firm consolidation area between the previous wave high at $1836.9/oz and the low at $1677.9/oz. The level at the bottom is looking more important and it has been tested three times recently to good effect. The worry for the bulls is if it breaks lower beyond the red zone on the chart below. Ahead of that, there is a blue zone close to $1734/oz and in the near term, we can see if it manages to hold.
On the upside, the volume point of control (VPOC) is a magnet. The price has been oscillating around there for a while now and a definitive break and close above $1800/oz would be a good sign. Beyond that, the downward sloping trendline seems very important, and if the price is to head back to the high of $2081.8/oz that would be a good hurdle to take out.