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Can the gold price break above $1850/oz next week?

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(Kitco News) - The gold price has had a bit of a revival in the middle of this week once again rejecting any downside moves below $1800/oz. The FOMC produced a 75 bps hike to take interest rates to 1.75%. Elsewhere, Fed Chair Jerome Powell said that the bank would not be looking at another 75 bps hike and reduced the projected speed of increases moving forward compared to some analyst expectations.

Looking closer at the impact on gold, the markets clearly felt there was some need for the safe-haven asset as the price has risen since the event on Wednesday. On the technical side, there is a consolidation high of $1879.45/oz that the buyers need to break to get some momentum going in this move higher. Beyond that, the next resistance is at the green shaded area near $1920/oz.

On the downside, a break of the previous wave low at $1805/oz could spell trouble. This would mean this recent move higher has just been a retracement and the underlying downtrend since March 2022 is still in play. There is trendline support and another key level that the bears would have to break. The red shaded zone represents a very congested price area that has been tested many times at $1780/oz. For now, the price is stuck between a rock and a hard place and a break of either of the aforementioned levels could give us clues about the future path of the yellow metal.

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