(Kitco News) - Gold has pushed higher during the EU session but the market is heading to a pretty strong resistance area. For most of the session, the yellow metal has been around trading around half a percent higher and at the moment the price is $1777/oz. The 4-hour chart below highlights the fact that the price is heading to a previous support area from 16th May at $1785/oz. This area was also used at the beginning of July before the subsequent fall to the low on the chart.
The volume point of control is much higher up and if the resistance is broken we could see the price head towards there at some stage as it acted like a magnet for the price. At the moment there is some traffic before getting into that price distribution zone between $1800-80/oz.
On the downside, the next support area is at the orange shaded area near $1740/oz. The price found it hard to break out of the area but since has done with decent volume and this suggests there is market backing for a move higher. For now, in the short term, the bulls are in charge and we will have to see if the price can break the blue resistance area in the U.S. session.
