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
subdued greenback.
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).
