Gold shoots higher in early European trading hours

LONDON (Apr 11)  There has been a solid increase in the gold price during European trading hours. The yellow metal is now trading 0.81% higher at $1962/oz as it seems investors are flocking toward the safe haven. The weekend news that Vladimir Putin has given himself a four-week deadline to achieve victory in Ukraine could be one factor but there has also been a drop in stocks and the U.S. dollar since the EU session began. 

Looking closer at the technicals, the 4-hour chart below shows a decent break of the green resistance line at $1951/oz off the back of some decent volume. The price is now firmly away from the volume point of control (VPOC), often a pretty bullish sign. Next up is the black resistance at the consolidation high. $1967/oz was a formidable resistance back in late March and it would be a good coup for the bulls. Beyond that, the recent high near $2078.8/oz is the one to beat. 

On the downside, the levels are not really in focus at the moment. The next support is back at the green horizontal line. There is also a trendline that was recently broken that could be retested again. Then the main VPOC area will be key if there is to be a retracement. All in all, the bulls are in charge right now and the black resistance line will be the focus for the rest of the session from a price perspective. 

KITCO