Where are the support levels in gold?

 New York (Jun 14)  Gold has been moving lower in recent sessions but the precious metal is coming up to some important support zones. Relatively speaking gold has been performing well recently and this bout of weakness could be in response to the rise in the U.S. dollar and some profit-taking.

Looking at the 4-hour futures chart below, the price is coming up to the previous wave low. Just below that there is a vacuum of low volume at the green shaded area near $1846.6/oz. Below that there is another zone to watch but only if the bears get more control of the market. That level is just above the psychological $1800/oz area.

Interestingly, on the price moves lower that has not been as much volume as there was when the market was trending higher. This is usually a good sign that this is just a retracement and not a reversal. There was also a trendline break and normally when this occurs the price often retests the trendline and it can be a good technical signal.

If this is just to be a small blip in an otherwise solid trend the bulls will be aiming to take out the high at $1919.2/oz. They will have to make it through some traffic at the mean value area near $1896.6/oz but if it does happen then $2K could be next.

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