(Kitco News) - Gold is trading flat on Monday morning and the price of the yellow metal is struggling at a previous support zone. Today is a U.S. holiday so chances are action in the afternoon could be pretty slow but ECB President Lagarde is speaking later in the day (2 pm London time). Mid-week Fed Chair Powell testifies before the Senate and there could be a pick up in volatility as it seems the inflation rate will be on the agenda. The Fed recently reacted by increasing interest rates by 75 bps and some comments on the future path of monetary policy could be anticipated.
On the 1-hour futures chart below, the market has made a few consecutive higher high and higher low waves but is edging towards the volume point of control (VPOC) line at $1851.6/oz. This is where most contracts have exchanged hands in the given time period on the chart. There is now a firm consolidation low at $1806/oz. The next area of support stands at the green line near $1831.3/oz.
On the upside, the price has some strong support zones to break. The next point is just above the VPOC level at the black like ($1858.1/oz). Not only has this area been a resistance point on its own it has also been a pretty firm congestion area. There have been around nine significant price reactions at the price. Above that, the high on the chart of $1882.5/oz is the wave high for the bulls to beat. This is the main consolidation high and a break to lead to another bull market formation on the higher timeframes.
