Gold trades above 200-DMA, Fed eyed

By FXStreet FXStreet (Mumbai) – The buying interest in the yellow metal continues to pick-up pace as investors run for cover in search of safety nets amid persisting global market turmoil.

Gold: FOMC Statement in focus

Currently, gold trades modestly flat at 1120.80, receding quickly from fresh close to three-month highs reached at 1122.50 in mid-Asia. Gold is seen retracing gains as sentiment appears to have improved with the recovery in oil prices. Although from a broader perspective, ongoing global growth concerns continue to underpin the demand for the safe-haven gold.

Moreover, the US dollar trades lacklustre as we head into the crucial Fed decision due later today, with the central bank widely expected to keep key rates unchanged. However, markets are expecting the Fed to turn more dovish in wake of the recent rout in oil and stock markets crash. This, in turn could push gold prices higher.

Gold Technical Levels

The metal has an immediate resistance at 1130 (round number) and 1134.70 (Nov 3 High). Meanwhile, the support stands at 1118.40 (Jan 26 Low) below which doors could open for 1112.12 (1h 50-SMA)
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Source:: FX Street