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Post-FOMC gold futures technical analysis

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(Kitco News) - Gold Technical Analysis - The gold chart below shows there is still some pressure on the yellow metal after the FOMC meeting last night. Fed's Powell and Co. decided that they will keep rates and QE unchanged but upgraded their inflation and growth forecasts.

This morning with the rise in US 10 year yields has gold is under pressure once again. The daily chart below highlights some levels that could become important in the coming weeks and months. 

Right now the yellow metal is trading at a high volume node. This is where lots of buyers and sellers exchanged contracts but if the price moves lower it would move into the next distribution. That would be between $1675/oz and $1620/oz or so.

The main peak of the volume there can be found at $1645/oz but it has to be said the area lower is much larger. At $1554/oz there was more buyers and sellers than there was anywhere else in the chart and this means it could be the price point that the market looks to as a reference area. The peaks of the volume profile are very important and have often been used as areas of acceptance and rejection for the price.

On the topside, there are a few key zones to watch. $1800 is the next major volume profile resistance level. There were 4-5 key price bounces around that zone and it could be an important resistance in the future. Next up is the downward sloping trendline from the all-time high. If that gets broken it would give us a major indication that the bulls have stepped in and could drag the price higher. 

For now, the bears are clearly in charge and lower levels of support should be the ones to watch. If the price closes lower today it looks like another lower high wave could be made and the key would be the break of the current wave low of $1676/oz to indicate more bearishness is on the horizon. 

 

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