News Bites
Gold breaks higher after a rough start in Europe
(Kitco News) - Gold started the session close to a low of $1923/oz but has since recovered over $0.10c to trade at $1935/oz ahead of the U.S. open. The price is currently stuck in the middle of a consolidation range between $1888.3/oz and $1967.2/oz. The 4-hour chart below shows some signs of life, however.
The red downward sloping trendline has now broken to the upside although it has only two major touches. The confirmation of the move higher will come if the black resistance line at $1967.2/oz breaks to the upside. This does represent the high of the head and shoulders pattern.
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This is why Russia is suffering huge losses in Ukraine despite a larger army - Marko Papic |
Right now from a volume profile perspective, the price is right in a congestion zone and near an area where many contracts have been traded. For a meaningful breakout to occur the price needs to move away from the zone with good volume. As per usual this could pick up when the U.S. traders come to market so keep an eye out on price action in the afternoon.
On the downside, the main area of support comes from the orange box at around the $1900/oz area. Below that, the VPOC on the chart stands near the $1820/oz area. For now, the market is in a sideways phase but the resistance levels are in focus above the current price level.
