(Kitco News) - After a good start to the session, gold moved lower just before the U.S. open. The yellow metal is now 0.15% lower trading at $1716/oz. Looking at the hourly chart below, there has now been a small sequence of lower highs and lower lows since the most recent high was hit at $1738.3/oz on 22nd July. This came after a decent rally from $1678.4/oz.
The chart is showing a bull flag type pattern at the moment but it doesn't look like the top of the grey channel lines will be tested at the moment. If that pattern fails a break of the green support area will make another new lower low wave and possibly take the price to test the volume point of control area (VPOC) at $1705.8/oz. Below that, there is another support area at the blue zone near the psychological $1700/oz round number.
On the topside, the purple highlighted zone represents a high volume node and it seems as if the market rejected this before moving down. The top of the consolidation is at the aforementioned blue resistance and a break of the flag pattern could take the price there.
