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Gold rises sharply ahead of FOMC decision

FXStreet (Córdoba) - Gold prices soared during US trading hours, with investors taking a weak local inflation report as a no-hike coming from the Fed this Thursday.

Spot gold surged up to $1,124.17 before retracing some to end the day around 1,119.00, the highest close since September 8th. The commodity however, is far from suggesting further gains, and it will take more than an on-hold stance from the US Central Bank to bolster interest in the bright metal.

Gold technical view

“Technically, the upward potential remains limited in the daily chart, as the daily advance stalled around a bearish 20 SMA, whilst the technical indicators turned higher, but are still below their mid-lines”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the 20 SMA is gaining upward tone around 1,108, whilst the Momentum indicator turned flat above its 100 level and the RSI also lost upward strength, and hovers around the 65 level. The main support for this Thursday comes at 1,109.20 with a break below it on a hawkish FED signaling a downward continuation for the upcoming days”.

Support levels: 1,109.20 1,098.70 1,089.30. Resistance levels: 1,124.20 1,131.40 1,142.50.

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