The $1700/oz psychological area has been breached once again

Gold is still looking pretty heavy at the moment and lower levels are in focus as the bulls continue to remain in charge. There has been a fresh wave of selling pressure as both stocks and fixed income yields rise in the EU session so far.

The next support comes at the previous wave low at $1672.8/oz and this area was very prominent back in April to May 2020. Before that, the area was also a very strong resistance back in March 2020 too and this does help any suggestions that it could be a key area this time around.

The lighter red trendlines are showing the channel has been very well respected too. The lower channel zone could act as a support zone and the price has bounced off the trendline at least three times already. If there is a break below the trendline then it might spell more trouble for the yellow metal.

If this is the case, the next major support zone is at $1587/oz but before that the $1600/oz psychological level is in the way. The volume has not been extremely healthy at the moment and this shows the lack of demand at this current price point. One thing is for sure, the bears are in charge as $1700/oz has been broken again today.

By Rajan Dhall

For Kitco News

 

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