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Gold hits the $1800/oz resistance

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(Kitco News) - In the European session gold has met some selling pressure at the $1800/oz resistance zone. In recent sessions, the precious metal has enjoyed a good run especially post FOMC. The risk environment has been pretty good today and gold and stocks have been moving in the same direction but maybe some risk capital has moved away from the safe haven to riskier assets.

Looking at the 4-hour chart below you can see the rejection at the black horizontal line. There was also a low volume node on the volume profile indicator at the zone. On the plus side for the bulls, there are some key support levels around. The price is now at $1781/oz (green zone) which was used heavily as support in the previous distribution back in late August. Below that there is another strong area above the volume point of control (red horizontal line) at the orange shaded area.

For now, this is still very much an uptrend on the 4-hour chart. Only a conclusive break of $1770/oz would change that. If there is to be a small retracement taking place the only way the bulls can be confident again is if the price breaks $1800/oz conclusively (in the medium term).

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