(Kitco News) - In the European and Asian sessions gold has traded higher but there is a strong mid-morning slump just before the U.S. market participants enter the fray. The yellow metal is trading half a percent higher after the news broke that the G7 nations are to stop all imports of gold from Russia. This will obviously tighten supply chains but it could also mean that the Russians would need to find other nations who are still willing to import from them. There will also be a lagging effect to this news as some current arrangements will need to run off before the ban kicks in.
On the 1-hour chart below there has been some positive movement. The price has hit a wall at around $1840/oz and seems to be moving back towards the middle of the consolidation in the short term. In the afternoon it will be interesting to see if the U.S. trades manage to claw back some of that early enthusiasm to try and test the green resistance at $1848/oz.
If not there are some formidable support areas. The first is at the purple shaded area near $1842/oz. It is also just below the volume point of control of the volume profile which adds to the gravitas of the area. Below that there is the consolidation low at $1806/oz. It is hard to see that coming under threat but it is good to be made aware of the level.
For now, this mini uptrend is holding. Although we have had a short-term blip the orange support could hold pretty much where the price is now. The break of the current wave high at $1841/oz would be a great indication that the trend could continue to the green resistance.
For now, this mini uptrend is holding. Although we have had a short-term blip the orange support could hold pretty much where the price is now. The break of the current wave high at $1841/oz would be a great indication that the trend could continue to the green resistance.
