• The yellow metal declined on Wednesday as investors remained cautious ahead of Federal Reserve’s first policy meeting of the month which is expected to throw some light on further US rate hike.
     
  • If the upcoming statement from FOMC is hawkish , chances of a seller stepping in on gold will be high again, which may send the yellow metal back towards its recent lows at 1209 levels.
     
  • To the upside, strong resistance can be seen 1227, a break above this level would expose the commodity towards 1237 levels.
     
  • To the downside immediate support can be seen at 1216, a break below at this level will open the door towards 1209 levels.

    Support levels: S1-1216, S2-1209, S3-1200

    Resistance levels: R1-1227, R2-1237, R3-1240

The material has been provided by InstaForex Company – www.instaforex.com