Gold price technical analysis ahead of the FOMC meeting
(Kitco News) - The 4-hour chart below shows that the rally in the gold pricesince late September is stalling. The price recently made a lower high lowerlow formation which could indicate a trend change but this is largely binarydue to the FOMC meeting later on. With that in mind, it is important to keep aneye out on the key levels on the chart.
There are two key areas on the downside. The first is the orangehorizontal support line. This level has been tested on a number of occasionsand could provide some relief. Below that, the green zone is the next valuearea for the distribution below at $1760/oz. It must be mentioned that there isa trendline (purple) that if broken could also mean there is some downside onthe cards.
Looking higher up, the $1800/oz level marked by the red zone isthe key area. The price has struggled to hold above the zone and there has notbeen a sustained break. Above that, the blue horizontal line is the currentconsolidation top if that breaks then the bulls could gather momentum to reachthe black line at $1837.3/oz.
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