Gold price technical analysis ahead of the FOMC meeting

New York (Nov 3) The 4-hour chart below shows that the rally in the gold price since late September is stalling. The price recently made a lower high lower low formation which could indicate a trend change but this is largely binary due to the FOMC meeting later on. With that in mind, it is important to keep an eye out on the key levels on the chart.

There are two key areas on the downside. The first is the orange horizontal support line. This level has been tested on a number of occasions and could provide some relief. Below that, the green zone is the next value area for the distribution below at $1760/oz. It must be mentioned that there is a trendline (purple) that if broken could also mean there is some downside on the cards.

Looking higher up, the $1800/oz level marked by the red zone is the key area. The price has struggled to hold above the zone and there has not been a sustained break. Above that, the blue horizontal line is the current consolidation top if that breaks then the bulls could gather momentum to reach the black line at $1837.3/oz.

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