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Gold makes a move towards support zones in Europe

Kitco Media
By Rajan Dhall
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(Kitco News) - The gold's price is again moving lower in the European session as the relentless greenback keeps climbing. At the weekend FX open, the U.S. dollar gained further ground against all its major counterparts but the yellow metal stood firm. When the European markets open the yellow metal finally succumb to the pressure and the price is moving back to the consolidation lows.

The 30-min chart below shows the price moving toward the green support zone where the selling stopped on 6th July. The main consolidation low is at the blue support area of $1726/oz. Crucially the price is still trading below the volume point of control (VPOC) area and if the bulls are to regain this market it will be an important level to take out.

Also on the upside, the consolidation high of $1751.7/oz lies in wait. If there is to be a break here it could create a higher low higher high pattern and some buying momentum could start to gather. The volume information could be a good sign to see how much market backing a move like this could conjure.

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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