(Kitco News) - Since gold found support at the $1800/oz area the price has been consolidating. As of today the price is hanging around $1861/oz and is around 0.21% higher on the session. We can expect a pretty volume light day as the U.S. is off for a public holiday and at the end of the week, the commonwealth nations will be celebrating the British Queens Jubilee. There has been some easing off from the relentless greenback strength recently and the U.S. 10-year Treasury yield has moved back below 3%. This has given gold a chance to move higher.
Looking closer at the technicals on the 4-hour chart, the price has now developed a resistance at the $1867.8/oz area. This is the resistance to watch on the intraday charts. If the price does break that zone then the next level to watch on the upside is the psychological $1900/oz area.
If the resistance does hold then the short-term consolidation low at $1840/oz could be used again. The main area of support on the chart is the blue shaded area where the previous VPOC is marked.
From a Fibonacci perspective, the 0.382% retracement zone has been strong. If this breaks there is more resistance at 0.50% and that level confluences with the aforementioned $1900/oz area. For now, the bulls are in charge but it is not clear if this is a change in trend back to the upside or just a retracement. A break of $1900/oz could give us some more clues.
