Gold futures continue to trade in a narrow range bouncing between $1650 to the downside and $1700 to the upside as the consolidation channel in which they are trapped becomes ever more well defined.
Yesterday’s wide spread up bar saw gold prices move back above the $1680 per ounce level before closing the session at $1681.60 with US Dollar weakness the primary driver for this move higher.
In addition, on the daily gold chart, an isolated pivot low was posted on Tuesday’s price candle at $1653 per ounce which also helped the precious metal off this low. As a result this pivot low has also re-set the underside of this current price congestion which is now contained in a $45 per ounce band. And until we see a break above or below this price band the price of gold will simply continue to move sideways.
All the above analysis has been done using Hawkeye software tools and indicators. If you would like to see Hawkeye in action, please just click the following link to join me in one of my Free live trading rooms - I look forward to seeing you there – Anna
By Anna Coulling