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Gold: Bulls take a backseat as all eyes turn to Fed

FXStreet (Mumbai) - Gold bulls remain on the back foot and refrain from creating fresh positions on Tuesday against the backdrop of the Fed commencing its 2-day policy meeting later today.

Gold keeps range above $ 1160

Currently, gold trades -0.18% at 1164.10, hovering in a $3 tight range. Gold prices continue to consolidate to the downside as the focus remains on the Fed amid prevailing uncertainty over the outlook on the interest rates.

Moreover, the yellow metal fails to benefit from the bouts of risk-aversion witnessed in Asia while also remains unperturbed by the ongoing US dollar weakness across the board. The USD index now drops -0.13% to 96.78 levels.

In the day ahead, a slew of US data releases is likely to impact the gold prices. While markets now await Fed decision due out tomorrow for further moves on the bullion. Higher rates could dull the appeal of non-interest-yielding bullion.

Gold Technical Levels

The metal has an immediate resistance at 1170 (Oct 26 High) and 1172.94 (hourly 200-SMA). Meanwhile, support stands at 1162.40 (Today’s Low) below which doors could open for 1160.51 (200-DMA).

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