gold7.1Some solid gains for gold last week as the precious metal ended last week in a bullish mood following an extended period of price consolidation within the spread of the volatility candle triggered back in early February. Cannot stress the importance of this candle, moving as it did way beyond the average true range for the metal in this time frame, it has since defined and described any further move higher.

Friday’s price action too is important for the longer term with substantial volume coming into gold, helping to push the metal to test the $1279 per ounce region, before falling back on profit taking ahead of the weekend.

gold7.2Gold has started the new trading week in a very positive move with the 200 ema on the weekly chart providing the necessary support as the precious metal attempts once again to take out the $1279 per ounce high. A move through here on strong and rising volume will see gold move to regain the key $1300 per ounce price point where we also have the volume point of control on the weekly chart.