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(Wallace Refiners) – The daily gold chart is showing that the price is in a strong downtrend at the moment. All hope is not lost for gold bugs as there are some decent support levels close by. The red support level at $1676.60/oz was an important level in the past. It was here that in March 2020 the price hit some strong resistance and when it did finally break it was used as a support level before a subsequent move higher.
Adding to this, Ther volume profile shows a low volume node at around the same price and this can often reflect a support area. The channel formation is marked in a light red colour and the bottom of the channel is very close by and it has been used as a support level once before.
If there is to be some support, the next resistance level is at $1776.5/oz. This was the consolidation low in 2020 and it was an important resistance level back in March 2020. There has already been a bounce at this level once already so there is no reason why it might not be important once again. At the moment it is clear that the bears are still in charge but if the price does bounce at these levels it could be an excuse for the bulls to charge once again.
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