Gold Technical Analysis: Support levels following FOMC

New York (Jan 27)  As the market prices in more aggressive rate hikes gold took a bit of a tumble after the latest FOMC meeting on Wednesday. This leads analysts to look for levels on the chart that the yellow metal might find some support. Interestingly on the move up heading into the meeting, the red downward sloping trendline was used to good effect as a resistance zone and if the price does move back up could be a sticky area aga

On the downside, the price is currently struggling at the blue zone which has been tested six times on the chart. From a technical point of view, it does also confluence with the grey upward sloping trendline and this could make it stronger. Below that, the red shaded area also looks firm as there have been many touches around that zone too. The $1800/oz area has been a massive psychological area over the last few months and there could be some support there too. Lastly, the consolidation low is at the black support level at $1762.2/oz.

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