Gold back in red below $ 1320, Fed verdict eyed

Having peaked just below $ 1340 marker in the opening trades, the yellow metal is seen easing as we move towards the mid-Asian session, as the Asian equities advance ahead of the FOMC decision due later today.

Gold drops sharply in Asia

Currently, gold trades modestly flat at $ 1318.30, extending its retreat from 1338.43 tops. Gold gave back almost entire gains seen yesterday as markets take profits off the table ahead of the highly influential Fed outcome on the interest rates.

Moreover, a recovery in the Asian equities, particularly the Japanese stocks, also weighed on the safe-haven demand for gold. The Nikkei 225 index bounces+1.40%, while rest of Asia defend mild gains.

All eyes remain on the upcoming FOMC statement, with analysts predicting the exact timing of the next potential rate hike this year.

Gold Technical Levels                                   

The metal has an immediate resistance at 1340 (round number) and 1346/47 (previous tops). Meanwhile, the support stands at 1310.76 (Jul 21 Low) below which doors could open for 1300 (round number).