The monthly chart for gold gives gold traders and investors some much needed cheer as the precious metal now has some solid support at $1257 where the volume point of control currently sits, and from where the metal has progressed on solid volume. To the upside $1357 is the target and first significant resistance on this time frame, and any break through here would take the metal to $1374. But what is encouraging from this price action is that any break of this second resistance would take gold into a low volume node on this chart, and gives the metal the potential to accelerate higher and back to the key $1500 per ounce region.
Much, of course, will also depend on the USD, and whether the currency can reverse the current bearish sentiment.
By Anna Coulling