Gold Price Techical Analysis
(Kitco News) - Gold has broken and consolidated above the all-important $1800/oz level overnight and this put the upside levels in focus. On the daily chart below the trendline marked in purple stemming from all the all-time high is now a key resistance point. If the price can break above the trendline the bulls could be firmly in charge of the market. There is also another resistance at the red shaded area close to $1835/oz. This area has been a sticky area for a while and if broken would mean the price has made a higher high, higher low pattern.
It has to be noted that the break higher happened off the back of a good spike in volume. This is encouraging as it means the market backed the move higher in the yellow metal. The next main distribution resistance from the volume profile indicators comes at the high volume node at $1837/oz. It will be interesting to see in the coming sessions if the buying spree can continue but with some of the central bank announcements out of the way and the holiday season coming up the market could settle into the new year.
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