A Good News Story For The Gold Bugs
Anna Coulling | Apr 27, 2021 01:02AM ET
I’ve referenced the $1800 per ounce handle in many posts for gold in the past and last week was one where this psychological price point was in focus once more and tested repeatedly on Wednesday, Thursday, and Friday before the precious metal closed the week at $1777.8 per ounce. As we can see from the chart, a cluster of two levels on the accumulation and distribution indicator are now coming into play at this level and helping to cap off any advance. In addition, the volume on the VPOC histogram is also well developed with high volume extending from $1770 per ounce up to the $1800 per ounce level, so a further reason why gold is struggling.
The good news is that once this level is breached which I believe will be in due course, then we have a low volume node above which extends to $1830 per ounce on the daily chart, so we can expect to see this spread of price delivered relatively easily. At least until we run into a density of volume that stretches from $1830 per ounce to $1870 per ounce and is this letter level that holds the key longer time since once this is breached, we do indeed strike a home run towards the elusive $2000 per ounce the route to which has no price resistance and only low volume on the histogram to hinder progress. So a good news story for the gold bugs.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.