Gold Futures Price Analysis: Gold is not out of the woods just yet

London (Apr 21)  Gold has had an impressive move higher and leading into the European open the price was 0.40% in the black. Interestingly, the yellow metal still has not managed to get and close above the 30th November 2020 low of $1767.2/oz. If this level is broken it would be a decent hint that higher levels could be on the horizon.

 

In addition to this, the aforementioned level confluences with the 23.6% Fibonacci extension which has been plotted from the all-time high to the low of the current consolidation area. 

 

The good news is the price has made two consecutive higher highs and higher low waves and this confirms the base formation is in place. The next resistance after the $1767.2/oz area is the $1814/oz area marked by the purple horizontal line on the chart.

 

On the support side, the dark green shaded zone at $1755/oz is the next area to look out for and if that fails there is a HVN at $1735/oz which has been sticky in the past. All in all, the bulls are in charge for now and let's see if the U.S. traders can keep the momentum up this afternoon.

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