Gold dips in Asia near $1210, FOMC awaited

FXStreet (Mumbai) - Gold prices on Comex pared previous gains and retreated in the mid-Asian session as the traders paused their buying spree and booking profit on their gold longs after the yellow metal peaked to fresh three week highs at $ 1214.90 yesterday on broad based US dollar sell-off.

Gold drops from $ 1211.60 highs

Currently, gold trades -0.36% lower at 1209.50 levels, having posted day’s high at 1211.60 and day’s lows at 1208.80. Gold prices edged lower this session mainly as traders preferred to unwind their gold longs after the recent upsurge as markets remain nervous ahead of Fed decision due out later in the day.

Moreover, gold prices continues to trade cautious heading into the Fed decision with SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, holdings falling 0.44 % to 739.07 tonnes on Monday, the first decline in two weeks.

Further, China's gold imports from Hong Kong dipped in March to their lowest level in seven months, data showed on Tuesday, indicating easing physical demand for the precious metal.

Gold Technical Levels

The metal has an immediate resistance at 1215 and 1220 levels. Meanwhile, support stands at 1205 below which doors could open for 1200 levels.