Gold is under pressure and we are close to an important support

New York (Feb 17)  The yellow precious metal is moving lower and it looks like there is some volume behind this over the last couple of sessions. Leading into the US session gold is currently 0.65% in the red and the greenback has been performing well across the board. Yields continue to climbed and maybe investors are preferring that safe haven and stocks over gold right now.

Gold is under significant pressure and if the red shaded area at $1787/oz breaks to the downside there could be a move to the blue line near $1676/oz.

Looking at the volume at price indicator on the right-hand side of the chart the $1760/oz looks strong and this is known as a low volume node. If the level breaks the value area at the previous consolidation area at $1729/oz could stem the losses.

The volume is currently backing the move lower as when the price move down the volume indicator histogram moves up. It will need to watched closely if there is to be a break of the support to see if it is a strong break with the backing or market participants.

If the bulls do manage to step in at the support area the next level on the way up is the green shaded zone at $1870/oz. Only if we see a break of that the recent pattern of lower highs and lower lows would be under threat.

For now, the bears seem firmly in charge.

KitcoNews