Gold continues to remain rangebound

gold_today_26_9_16The technical support platform in the $1305 per ounce area came to the rescue of gold once again last week, with five consecutive days of gains, taking the precious metal from the gapped up open of Monday at $1313 per ounce to end the week at $1341.70 on the December contract.

As I suggested in one of my previous posts for gold, the FED delivered a helping hand following the decision to leave rates unchanged, and driving the price higher on strong volume, and back to the volume point of control which remains in the $1338 per ounce area. However, note the falling volumes on Thursday and Friday with little follow through, with early trading seeing gold move lower to currently trade at $1338 per ounce.

Despite this bullish sentiment, longer term gold remains rangebound, and continues to trade within the spread of the Brexit candle of late June, with both Thursday and Friday’s price action testing the well developed resistance area at the $1345 per ounce price point, which to date has help firm.

For longer term speculators and investors the technical picture is clear, and until we see the current tunnel range breached, we can expect further congestion to build with the VPOC providing the fulcrum around which this market is currently balanced, and transacted volumes building accordingly in this area. To the upside the ceiling remains in place at $1385 per ounce, but it is interesting to note the general decline in each attempt to rally, with secondary resistance building at $1360 per ounce. The floor of support is well defined, and should this fail to hold in further testing longer term, a deeper move to test the $1260 per ounce area is then likely. In the meantime, patience is the key!

By Anna Coulling

Charts from NinjaTrader and indicators from Quantum Trading

About Anna 1019 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.

2 Comments on Gold continues to remain rangebound

  1. I would love to learn how to trade. And I would love to be ur students. I will be waiting for the next action to take. Am a newbie by the way

    • Hi Kalagbor – many thanks and the good news is I will soon be releasing my course entitled The Complete Forex Trading Program which will certainly help to get you started. In the meantime you are more than welcome to join the members area of my site where you will find many videos from recent webinars and you can find the link here : http://www.annacoulling.com/members – this will also give you access to the live weekely webinars and I would be delighted to see you there – all best – Anna

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