Gold is still heading to support levels
(Kitco News) - Gold is trading flat on Wednesday and still seems to be heading to support levels. On the daily chart below the price has broken through the volume point of control (on the volume profile indicator) and is moving to the next support at $1750.78/oz. This level has been used on multiple occasions but is not the strongest support on the chart. The next one down at $1722.36 has had more impact over the time horizon shown and could be a more formidable area to breach.
If there is to be some break from the bearish pressure, the previous wave high could come into play again. $1787/oz could be retested and if it holds as resistance it could be a sign that more pain is to come. $1809/oz is the point on the chart where most contracts have changed hands. This has been a magnet for the gold price and we could settle there again at some point in the future.
For now, the bears are firmly in charge of this market and it is prudent to keep an eye on the support zones.