Gold bulls in complete control

gold daily chartAs I have been forecasting over the last few weeks, the bullish trend is now developing nicely and has also given us a perfect example of volume price analysis in action on the daily chart with the strong move higher last week on the daily chart, fully supported with rising volume and only pausing for respite on Friday. This morning’s early trading has seen the precious metal continue higher bursting through the $1900 per ounce area and trading at $1938 per ounce at the time of writing, and with little ahead in terms of volume resistance as price enters a low volume node, expect more to come as we rampage higher towards the $2000 per ounce region and beyond longer term.

From a fundamental perspective, there is no question weakness in the US dollar is offering its own support, but the primary drivers are now the prospect of longer-term inflation. Indeed one interesting fact is that futures traders are now opting to settle in the physical metal rather than in cash which is also helping to fuel demand and further buying of gold. The trend monitor indicator for ninjatrader continues to remain blue.

gold chartIt is a similar picture on the weekly chart with strongly rising volume supporting last week’s wide spread up candle and confirming the bullish picture, as here also we are driving into a low volume node on the VPOC histogram.

By Anna Coulling

Charts from NinjaTrader and indicators from Quantum Trading

About Anna 2016 Articles
Hi – my name is Anna Coulling and I am a full time currency, commodities and equities trader. I have been involved in both trading and investing for over fifteen years and have traded many different financial instruments, from options and futures to stocks and commodities. I write and publish articles ( mostly for free ) for UK and international publications on a wide variety of financial issues, and in particular I enjoy helping others learn how to invest and trade.

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