Technical levels ahead of tomorrow's FOMC update
(Kitco News) - Gold has been in full consolidation mode ahead of the FOMC meeting tomorrow night but there are some levels to keep an eye on over the coming sessions.
The histogram on the right-hand side is the composite profile it highlights the volume of contracts traded at what price. At the moment the bell curve is building a massive value area between $1824 and $1898 per ounce. Any break outside of these levels could be a good signal of the future direction of the trend. These levels could also act as great support and distance levels as they have done recently.
In the near term, on the upside, the level to watch is at the green line near $1874.6 per ounce. If this level gets taken out then the bulls could take a charge at the previously mentioned $1898 area.
On the downside, the yellow level at $1824.8 per ounce looks firm and it has been tested six times on this chart alone. Volume at the moment is pretty thin and maybe leading into the US session there could be an increase in interest in the yellow metal.