Gold Price Analysis: Volume profile POC targets $1,720 / $1,840

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.

Ross J Burland FXStreet

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

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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