Gold Reverses a Spike to $ 1247, FOMC in Focus
The bulls took a breather from its overnight rally in mid-Asia, sending
gold slightly lower from fresh three-day highs, despite a broadly
FOMC statement in focus
Currently, gold trades modestly flat at 1243.90, easing-off fresh three-day highs reached at 1246.92 in early Asia. The bullion trims gains as markets resort to lock-in gains after the latest rise, ahead of the upcoming Fed rate decision due later in the NY session.
Earlier this session, the overnight rally in the bullion gathered pace after the US dollar extended weakness across the board on the back of disappointing durable goods and consumer sentiment data released on Tuesday.
Looking ahead, the gold prices are expected to trade on a cautious note amid mixed sentiment on the global equities, as markets await the crucial Fed verdict for next direction on the non-interest bearing precious metal.
Gold Technical Levels
The metal has an immediate resistance at 1250 (psychological levels) and 1257/58 (previous tops). Meanwhile, the support stands at 1240 (round number/ 1h 200-SMA) below which doors could open for 1238 (1h 50-SMA).