Gold Technical Analysis: Strong price action but some traffic ahead

New York (Feb 7)  Gold has been trading well in recent sessions and despite the bumper NFP figure on Friday, the price held up nicely after a brief dip. The U.S. Bureau of Labor Statistics reported on Friday that Nonfarm Payrolls (NFP) rose by 467,000 in January. This print surpassed the market expectation of 150,000 by a wide margin. The money markets are pricing in rate hikes and bond prices are on the rise. Although this is a threat to the yellow metal it didn't make as much of an impact as it has in recent times.

Moving back to technicals, the price has been making higher highs and higher lows since 28th January. There has been a few big dips but the gold bulls are stubborn it seems. The red-shaded area was a decent resistance point but the market overcame the zone. If the price does continue to move higher then the green horizontal line is the next resistance level to watch. Beyond that, the volume point of control (VPOC) could also be a sticky area.

On the downside, the $1800/oz area has been a massive zone for a long time now and the price could end up back there if the bears step in once more. The main support on the chart is the low at $1780/oz. All of the levels higher up must be watched for rejection signs.

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