Gold stuck near 5-1/2 year lows, awaits FOMC statement

FXStreet (Mumbai) – Gold prices continue to hover in the range of USD 1190-1200/Oz, its weakest since early 2010, as investors remain hesitant to push up prices ahead of the FOMC statement despite weakness in the USD.

Gold: Supported by hourly 50-MA

The yellow metal bounced-off twice from the hourly 50-MA since the NY session yesterday. The sell-off in the Chinese equity markets on Monday helped the metal rise briefly above USD 1200/Oz, but failed to sustain above the same.

Moreover, the investors now await the FOMC policy statement due tomorrow. The metal traders would be interested to know if the Fed stays non-committal with regards to the timing of an interest rate hike or provides a hint at the exact timing of the same.

Gold Technical Levels

The metal currently trades around USD 1195/Oz. The immediate resistance is located at 1100, followed by another resistance at 1109.73 (hourly 200-MA). The support is seen at 1093.11 (hourly 50-MA) and 1088.33 (previous session’s low).

Gold prices continue to hover in the range of USD 1190-1200/Oz, its weakest since early 2010, as investors remain hesitant to push up prices ahead of the FOMC statement despite weakness in the USD.

(Market News Provided by FXstreet)