Make Kitco Your Homepage

The gold price is stuck in technical no man's land

Kitco News

Editor's Note: With so much market volatility, stay on top of daily news! Get caught up in minutes with our speedy summary of today's must-read news and expert opinions. Sign up here!

(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.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.