Gold futures bounce off a nice technical support area

New York (Feb 22)  Last week it was highlighted that the consolidation low near $1767.2/oz was an important support level to watch. Since then the price of the yellow metal has bounced and moved back to the upside but the pressure is still on.

Looking ahead, the market could still be keeping an eye on the zone as the volume on the retracement has not been too impressive to say the least. The spikes in volume on the moves lower have been much more prominent in recent times. Obviously, this could change in an instant and we should keep an eye on the volume if the price does move closer to the next mean value area of $1814/oz.

On the upside, the next resistance zones are the aforementioned $1814/oz area and $1858.9/oz. The latter was a very strong previous support turned resistance from earlier on in the year, but it was used to great effect as a support level in Aug-Sept 2020.

The outlook for the metal is still bearish for now as the market continues to make lower highs and lower lows but a break of $1857/oz is where that could change. On the downside, if there is to be a break of the current support $1676/oz is next up.

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