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Gold breaks support zones during the European session

Kitco Media
By Rajan Dhall
Published
Updated
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(Kitco News) - Gold is breaking through the daily lows once again as it seems that the yellow metal cannot catch a break at the moment. The dollar index is once again pushing higher and this has taken EUR/USD towards 1.01 and the rest of the majors are also struggling against the strong greenback. Gold is actually holding up better but it has not stopped the metal from breaking through the most recent low on the daily chart of $1730.7/oz on 6th July.

Looking at the daily chart there are some support zones to keep an eye on. first up, is $1721.8/oz. This is a support zone around September and October 2021. Below that, the main consolidation low stands at $1677.3/oz but before then there is the psychological $1700/oz level in the way.

It is clear that the bears are in charge of this market at the moment but if there is to be a pullback the previous support levels could act as a resistance moving forward. $1751.2/oz is a prominent resistance now but the major area stands at the volume profile volume point of control (VPOC) area at $1795/oz.

Kitco Media

Rajan Dhall

Rajan Dhall is a financial analyst that has been in the trading industry since 2009. From working in Canary Wharf (London) as a head trader to becoming a journalist on a real-time news desk, Rajan has worked his way through many positions in the financial sector. The main area of Raj's expertise lies in technical and statistical analysis. Rajan currently lectures technical analysis with the Society of Technical Analysts (STA) at the London School of Economics. One of the main areas Rajan has based his analysis on is probability. Raj completed his certification (probability) with Harvard and regularly uses probability theories in his analysis as he feels it helps him add value to his clients and customers.

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