Gold ends slightly lower in choppy trade ahead of Fed decision

FXStreet (Córdoba) - Gold prices aimed to recover ground during the London session, but ended the day flat around their opening levels, with spot hovering a few cents below $1,062.00 an ounce.

The yellow metal has been under renewed selling pressure since the beginning of December, in anticipation of a possible rate hike in the US, to be announced this Wednesday as the Federal Reserve ends its two-day meeting.

Gold technical perspective

“The early advance found selling interest around the daily 20 SMA, while in the same chart, the Momentum indicator remains horizontal around its 100 level as the RSI indicator heads south in negative territory, in line with further declines”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart the technical bias is also bearish, given that the price remained below a bearish 20 SMA, while the technical indicators head lower near oversold territory. Anyway Wednesday's move will be all about the FED and nothing about technical analysis, although a break below 1,046.30 should open doors for a steady decline towards the 1,0000 level.”

Support levels: 1,057.30 1,050.30 1,046.30. Resistance levels: 1,068.90 1,074 60 1,082.60.