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Gold needs to break this sideways pattern

Rajan Dhall

Kitco News

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(Kitco News) - The gold price remains in full consolidation mode at the moment. The price is trading around 0.09% higher on Friday during the European and Asian sessions. On the 4-hour futures chart below, the price has been making lower highs but the previous wave low of $1806/oz remains fully intact.

In terms of the volume profile, the price is currently below the volume point of control red horizontal line. This is a slightly bearish signal and the line could act as resistance if the price does move higher. On the downside, the two major supports are $1806/oz and $1785/oz.

On the upside, the price looks very congested. $1840/oz look very stick and the price has had many touches at that price point. The strongest resistance zone is at the black horizontal line at $1861.6/oz. For the bulls to take control of the market the consolidation high at $1882.5/oz is the level to break.

By Rajan Dhall

For Kitco News

Contact rdhall@kitco.com
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.