The gold weekly chart throws up a good support area

New York (Sept 20)  The gold weekly chart highlights a massive level in the coming weeks. This could be important as we head into the next Federal Reserve meeting on Thursday. The price of gold has fallen over the last 2 weeks and once again oscillated around the $1800/oz psychological figure.

The main support level on the chart is the green support zone just below the $1700/oz area. Beyond that, the next support is $1565/oz but on the daily chart, there are some slightly closer. The price has been making lower highs but the support has been holding well so at the moment no lower lows have been made.

On the topside, the first point of call is a sustained break of $1800/oz. Then the trendline marked in grey could indicate the trend but the red resistance is the big one it has been rejected a few times now and if the bulls take out the zone it would be a good indication that the price could push back to the highs.

Volume has been light but the most recent selling week had higher volume than the last. That indicates that the moves lower are gathering momentum. The trend of lower volume, in general, could change if the Fed announces something dramatic. This makes this week an interesting one.

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