(Click on image to enlarge) 

Last week was yet another for gold which promised much and delivered little, as the $1800 per ounce level continues to present a seemingly insurmountable barrier. The level was tested once again last week in an up-down candle combination as the precious metal continues to congest in this region. Of these it is perhaps the down candle which is more interesting, given the high volume on the day and the relatively narrow spread of the candle, suggesting further buying support at this level, a fact confirmed the following day with a recovery.

In terms of resistance ahead, there is very little and as we can see from a volume-based resistance perspective, this is falling away dramatically on the volume point of control histogram, so provided we see the price action supported with good volume, gold should break above this area with relative ease. So once again for gold bugs, it is a question of being patient and waiting for the move through the psychological $1800 per ounce price point and once this has been breached, expect to see gold develop the bullish trend further using the current congestion as the springboard for the move higher.