Gold prices rose during yesterday's session to test the weekly highs at $1236 but failed to break higher and pulled back, erasing all daily gains. The yellow metal's sell off came as the US dollar recovered ground across the board amid a rally in Wall Street and as US yields moved back to the upside. Now the attention turns to the FOMC statement that will be released today with no change in interested rates expected but the tone used by the Fed will be watched very closely.
After retesting the weekly highs at $1236, Gold prices faced some pressure and broke to the downside and back below the $1230 level with currently hovering just above the $1224.22 support level. The price is also receiving support from the purple trend line represented on the chart but with no clear momentum. From here, technically we will be focusing on an upward move and the level we will be watching is the $1237.8 level.
Support: 1230.74 / 1228.26
Resistance: 1237.79 / 1244.78