(Kitco News) – Gold has retraced somewhat in the European session and is now -0.66% lower on the day. The price of the precious metal has been climbing recently but all the talk of a faster taper from Fed’s Clarida and Waller seem to have taken some shine off the yellow metal. Today the price has moved down to $1840/oz but is heading to an important support area.
Looking at the daily chart below the blue area the price has come to now is the previous consolidation high between mid-July to early September. If the price does break through the zone then the purple area at $1812/oz is next up. From a volume profile perspective the red horizontal line at $1781.1/oz is the volume point of control on the chart. This is where the most amount of contracts have been traded at price. Although it is far away now it could always be tested again. Lastly, the downward sloping trendline on the chart could still be retested and this could also provide some support.
On the topside, if this support does hold then the previous wave high could be tested again. The main resistance still stands at $1918/oz at the red shaded area. Technically this is still and uptrend and the current move lower could still be considered a retracement phase.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.