The gold price has been pressured in the EU session

New York (Oct 4)  The picture is pretty mixed at the moment for gold. U.S. 10-year yields have risen this morning and it seems to be pushing the gold price lower despite the dollar index heading south too.

Looking closer at the daily chart below it is clear there was an intraday resistance at the orange line that the bulls could not overcome. At $1762.2/oz there was a low volume node that had been used on a couple of occasions as both support and resistance. It does not mean it cannot break later in the session or on another day but it does need to be watched.

On the downside below that, the main thing to watch is the green consolidation low at $1673.3/oz. On the topside, there is much more traffic. The aforementioned orange resistance line and the red area at the volume point of control (VPOC) are big hurdles. My main highlight on the chart is the trendline marked in purple.

The price is in a clear consolidation pattern and any test or break of this trendline could be a positive thing for the bulls. The fact that the Fed may move slower on rates or tapering could be a catalyst for a move higher but only time will tell. At the moment yields are adjusting but once that has been and gone the price action will be very interesting moving forward.

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