Gold's price hit an 8-day low at $1219 during today's early morning session as the Fed maintained its hawkish guidance. The bearish move took place even though the equity markets are trading with a risk averse bias. Clearly, the yellow metal is struggling to find a safe haven bid and is looking extremely vulnerable to the Dollar rally. More importantly, a December Fed rate hike is looking like a done deal. As a result, the greenback could remain well bid in the near-term, keeping the zero-yielding yellow metal under pressure.
After retesting the weekly highs at $1236, Gold prices faced some pressure and broke to the downside and back below the $1220 level with currently hovering just below the $1220.12 resistance level at $1219. Momentum turned also bearish as we can see on the RSI forcing Gold prices lose traction and head towards support levels. The next level we will be watching is the $1214.40 support level.
Support: 1220.12 / 1214.40
Resistance: 1224.22 / 1228.26