The gold price is trending higher but there are some levels should you be watching
New York (May 10) The price of gold has stalled at the previously stated high volume node on the composite volume profile. The area had been very sticky in the past as the area between January 2021 and mid-February showed that the most contracts had been traded at around $1840/oz. The move high came after the mammoth miss in the NFP report last week.
Looking in the medium term, the price could now be headed to the next resistance zone at $1878.9/oz. This was the consolidation high from mid-January to February and after the area was rejected the price moved toward the yearly low at $1673.3/oz.
In terms of support zones, if the price does move lower the bullish wedge pattern structure could provide some support, and below that the previous wave high and psychological $1800/oz zone could be next.
The trend on the 4-hour chart is still very much a bullish one. It will be interesting to see when the U.S. traders and investors come to market if they can keep the momentum going, especially as some of the shine has come off the rampant cryptocurrencies.
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