(Kitco News) – Gold sold off heavily after the FOMC’s more hawkish than expected tone on Thursday night. Now the price of the yellow metal seems to be heading toward’s the $1800/oz level it could be wise to look at some support zones.
The volume profile areas worked a treat recently with the low volume node just above the $1800/oz acting as a strong support following the event. The next one down also looks firm at around the $1760/oz area. Before that, the market will also need to push through the value area peak of the next distribution at $1780/oz and this could also be a strong support zone.
On the topside, if the buyers do step back in the next resistance is the green zone above where the price is currently trading at $1845.8/oz. Beyond that, the next distribution mean value area stands at $1896.4/oz just under the $1900/oz psychological area.
On the 4-hour chart below, it seems the bears are firmly in charge for now as the price is making lower highs and lower lows. The move lower was also backed by a decent amount of volume but over the coming days it will be good to see the difference in volume between the bullish and bearish candles on the 4-hour chart for clues to see how long this move lower could last