(Kitco News, Fri. Oct. 15th, 2021) – In the European session gold has met some selling pressure at the $1800/oz resistance zone. In recent sessions, the precious metal has enjoyed a good run especially post FOMC. The risk environment has been pretty good today and gold and stocks have been moving in the same direction but maybe some risk capital has moved away from the safe haven to riskier assets.
Looking at the 4-hour chart below you can see the rejection at the black horizontal line. There was also a low volume node on the volume profile indicator at the zone. On the plus side for the bulls, there are some key support levels around. The price is now at $1781/oz (green zone) which was used heavily as support in the previous distribution back in late August. Below that there is another strong area above the volume point of control (red horizontal line) at the orange shaded area.
For now, this is still very much an uptrend on the 4-hour chart. Only a conclusive break of $1770/oz would change that. If there is to be a small retracement taking place the only way the bulls can be confident again is if the price breaks $1800/oz conclusively (in the medium term).
![Live 24 hours gold chart [Kitco Inc.]](https://www.kitco.com/images/live/gold.gif)
Since the beginning of Q4, the gold price has been biding its time until key inflation reports were issued this week, trading in a tight $30 range no matter what has happened. Each time the bears made a push towards $1750, buyers showed up quickly. And each time the bulls took gold towards resistance at $1780, sellers came in to knock the price back down.
But the gold action beginning this Wednesday was different, as both gold and silver broke higher out of a month-long consolidation surrounding the issuance of the U.S. Consumer Price Inflation (CPI) report an hour before the U.S. stock market opened.
The schizophrenic gold price action mid-week began when the headline CPI for September came in at 0.4% month-over-month, 0.1% higher than expected, and the core rate was up 0.2%, in line with the consensus. With computer algorithmic trades set to sell a slight uptick headline in annual CPI data, due to Fed taper concerns, the gold price sold off all of its $18 gain immediately.
However, after investors began reading over the data stating food prices, energy costs, utilities, and new vehicles have been rising four consecutive months and showing 5+% inflation, the Fed’s transitory argument became more suspect. The volatile Comex session ended with the gold price zooming towards the key $1800 level.
![Live 24 hours silver chart [ Kitco Inc. ]](https://www.kitco.com/images/live/silver.gif)