- Gold is continuing to run to the downside, but there could be strong demand in $1,850’s.
- Volume profile analysis puts the key POCs at $1,720 and $1,840 as targets.
Following the recent analysis, Gold Price Analysis: Bears finally catch a break, where the price melted, as expected, below the trend line resistance, bears remain on track for a run towards $1,840.
A fresh low of $1,860.08 was made in the London afternoon session following a break of $1,875 in late Asia.
From a volume profile perspective, a break of $1,857 could be significant and lead to a run through a low volume area between there and $1,820.
In doing so, it then stretches the imagination of a retracement all the way to the 2019-YTD point of control (POC) down at $1,720.
This likely means that $1,850 is going to be a strong area of demand and troublesome for the initial $1,840 target which was based on a 38.2% Fibonacci retracement of the monthly bullish impulse between $1,451 and $2,075:
Monthly Fib retracement target
Therefore, failures to penetrate the support put the summer 2020-YTD Point of Control (POC) in the $1,940s back on the map.
Volume profile analysis