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The US dollar was seen trading lower Intraday against a basket of currencies. However, GOLD was not affected much as it failed to capitalize in the short term. There is an important risk event lined up during the NY session, as the fed interest rate decision is scheduled. The fed might be ending the asset purchases this time and will stay away from hinting about a rate hike. It would be interesting to see how the US dollar performs after the release. One might expect volatility in GOLD as well around the same time. It is trading around important levels, so any surprise might cause a break in GOLD.

There was a monster bearish trend line formed on the hourly chart of GOLD, which was broken recently. It climbed towards the 38.2% fib retracement level of the last fall from the $1255 high to $1222 low, but failed to hold the gains. GOLD is now trading lower again and struggling around the 100 moving average. GOLD is currently in a consolidation phase as it is waiting for the fed’s outcome for further action in the short term. The hourly RSI is above the 50 mark which is a positive sign, but if it tilts below the same then more losses in GOLD are possible. The last low of $1222 is an important support moving ahead.

On the upside, the 100 hourly moving average remains a major hurdle for GOLD. If buyers manage to clear it, then a move towards the 200 MA is possible in the near term.

Overall, one might consider buying dips around as long as the last low of $1222 holds.

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Posted By IKOFX Technical Team: Online Forex Broker
Website: http://ikofx.com