Volume confirms strength in Gold trend

This Gold rally can be divided into 8 sections. In each section, price rising is accompanied by increasing volume and decreasing price is accompanied by declining or flat volume . This means there is a higher comittment of capital present during the upward moves signalling strength in the upward move. The recent pullback (zone 8) is also accompanied by declining volume indicating the rally has not yet run out of steam. Watch out for a volume divergence, that is when volume is declining during a period where price is rising as an indication that the rally may be coming to an end.