Gold technicals ahead of the U.S. session

New York (May 5)  Gold has once again rejected levels close to $1800/oz after Janet Yellen spoke about rate increases last night. Ahead of the U.S. open, it will be interesting to see if the traders and investors target resistance zones now the Treasury Secretary backtracked on the comments. 

Right now the gold price is holding at around $1777/oz in the middle of the current distribution. The main area of resistance that took the price at that zone was the previous wave high at $1798.9/oz and it is the third time the level has been rejected. 

The next level of support is at the previous wave low near $1754.6/oz. Then if that level does break to the downside the next distribution mean value area hangs at $1729/oz. 

At the moment it is fair to say the bulls are in charge as this looks like a retracement and no real lower high lower low waves have been established. However, it was interesting to see a retest of the channel structure followed by a bearish move. 

The volume has confirmed the move lower had some decent backing but as mentioned before the catalyst for the move was the Yellen comments which have now been retracted. Later in the session, we hear from many Fed members and central bankers. After a slow EU session maybe we could be heading for a more volatile afternoon. 

KitcoNews