A more sedate week for gold after the turbulent price action of the previous week which saw the precious metal breakthrough $1600 per ounce on geopolitical events before reversing sharply. Since then markets have calmed and with buying in evidence both following the dramatic candle, and this week, the outlook for gold remains bullish. Immediately ahead on the daily chart we now have a resistance region coming into play at $1560 per ounce, and which has already been tested today. Once clear of this area the run higher is trouble-free with low volume on the volume point of control histogram. Patience is required for longer-term traders, but once this resistance is breached, we should see gold continue higher, as indicated by the trend monitor.
By Anna Coulling
Charts from NinjaTrader and indicators from Quantum Trading
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