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The gold price hit a very congested zone in the European session

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(Kitco News) - Gold started the European session 0.17% higher but as the session progressed the price has fallen and the support areas are being tested. At the moment, one of the main support zones is at the red horizontal line where the price currently sits. This is the point on the chart where most contracts have changed hands.

Below that, the main area of support is the green shaded zone at the consolidation low. Even on the higher timeframes, the area is important as if the price breaks there is not as much support below.

On the topside, there is a big stubborn area of resistance at $1832/oz. The price has tried to break the zone three times to no avail and if the bulls can breach the zone it would be a good coup. Beyond that, the downward sloping trendline could be a good level to break too followed by the red resistance area.

All in all, this market is very sideways at the moment. The lack of direction from the Fed is causing investors to look elsewhere for now. The inflation vs low rates theme is failing to provide any real impetus for a rally and any taper talk is tempering any rallies.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.