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Breaking Down the Key Levels for Gold

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Gold traded in a $20 range on Tuesday night, and given the recent action, that seems like a slow market. The $1,355 to $1,360 level has proved to be support since early Tuesday morning, and last night's low was higher than the low hit in yesterday's day session—$1,365.

After the International Monetary Fund trimmed its growth expectations Tuesday, there are further expectations of support from the Bank of Japan and the Fed, which has probably helped provide some intermediate-term support in gold.

(Read More: Gold Won't Rebound for a 'Long, Long Time': Analyst)

Gold hit a high of $1,404.20 on Tuesday before retreating by $40 later in the session. The longer that price action remains above $1,380, the more likely it is that we see buying lead to a retest of $1,400. A close above $1,400 could signal a slowdown and consolidation.

Meanwhile, a close back above $1,424 to $1,428 would probably indicate a consolidation higher, as investors find value. The major upside target is $1,474 to $1,478.

(Read More: So Gold Crashed, Now What?)

The major downside target of $1,300.90 will likely come into play only on a retest of $1,355 to $1,360 and a close below that level.

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