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Gold technical analysis: Upside levels are in focus

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(Kitco News) - Gold has had a decent few weeks with the price now consolidating about the psychological $1800/oz area. This week there has the small matter of the FOMC meeting on Wednesday night that could throw a spanner in the works of any potential rally. The price is currently testing the red downward sloping trendline on the chart which has been used as a resistance zone on 2 other occasions. If there is a clear break it could be a support zone and maybe lead to a longer-term move higher.

On the downside, the blue level could be another potential support zone and it is was the previous consolidation high. The level looks firm as it has been tested eight times on the chart alone. Another key support level is the very sticky $1800/oz area. This is also the volume point of control as the most amount of contracts has been traded at that level. For now, the bulls are in charge the price waves are making higher highs and higher lows and upside levels are in focus.

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