Gold makes a move down towards support zones in Europe

LONDON (July 11)  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