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Gold extends the rally to $ 1173, FOMC eyed

FXStreet (Mumbai) - The yellow metal keeps its upbeat momentum intact and rose to a fresh three-day beyond 1170 levels, as markets eagerly await the conclusion of the Fed’s 2-day policy meeting today.

Gold heading towards Friday’s high?

Currently, gold trades 0.52% higher at 1172, easing-off fresh three-day highs posted at 1173. Gold bulls remain boosted on the back of growing expectations of delay in the Fed rate hike until March 2016. While the Fed is likely to stand pat in its today’s meeting.

Moreover, the fresh selling interest seen in the US dollar against its six major peers also triggered further upmoves in the bullion. The USD index now loses -0.19% to 96.84.

Apart from the Fed decision, markets also closely await China’s new five-year plan due to be published later this week for further cues.

Gold Technical Levels

The metal has an immediate resistance at 1176.40 (Oct 21 High) and 1178.70/80 (Oct 23 High + round number). Meanwhile, support stands at 1165.30 (Today’s Low) below which doors could open for 1160.54 (200-DMA).

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