The gold price is looking at higher levels
NEW YORK (Mar 23) After a slow Asian session and a slow start in Europe gold has pushed higher and is now trading half a percent in the black. The yellow metal has managed to shrug off come Fed comments where Mester said she could be looking for a 50bps hike vs the 25bps that some analysts had been expecting.
Looking closer at the 4-hour chart below, the price has now consolidated into the small triangle formation marked in red. If there is a bullish break the black horizontal line at $1951/oz is the one to crack. Beyond that, there are two more levels to watch. The red zone could be the resistance for a head and shoulder s pattern. Then the all-time high beckons for the bulls.
| WisomdomTree uses gold as inflation hedge in new equity/gold ETF |
On the downside, the price is sitting at the orange support level at $1919/oz at the moment. There is also another level at the green horizontal line at $1881/oz. The good news is on the support side is that there is lots of traffic on the downside. The volume profile shows high volume nodes at $1898.2/oz and $1807/oz.
KITCO
