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(Wallace Refiners) – There are a couple of key areas that gold may find some resistance in the US session. The first is the black line at $1884.8. This level has been used around three times as support and could be significant as the price rebounds slightly. If the level does break then the red line looks slightly stronger as it was the mean distribution support area close to the place where the most volume had been traded at price ($1905).
Elsewhere there is a small trendline that could cause some issues but it is very close to the black resistance zone. Since there was a decent amount of volume in the sell-off yesterday it would be fair to say the bulls are in charge in the medium term. What would make me change my mind would be a break above the $1905 consolidation area so the price could move into the distribution zone higher up.
Leading into the election next week, if there is some political turmoil there could be enough volume and pressure for the price to take out some of these key resistance zones.
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