Gold inched higher on Wednesday, increasing the price of yellow metal to more than $1200.00 an ounce ahead of the US monetary policy announcement. The technical bias remains bullish because of a higher low in the recent downside move.
As of this writing, the precious metal is being traded near $1202 an ounce. A hurdle can be noted near $1204, the 50% fib level ahead of $1219, the horizontal resistance area and then $1250, the trendline resistance area as demonstrated with brown color in the given below daily chart.
On the downside, a support may be noted around $1180, the low of January 27th ahead of $1173, the 23.6% fib level and then $1100, the psychological number as demonstrated in the given above daily chart. The technical bias shall remain bullish as long as the $1180 support area is intact.
US Monetary Policy Announcement
The Federal Reserve is scheduled to announce its monetary policy today during the US trading session. According to the average forecast of different economists, the central bank is likely to increase its benchmark interest rate by 0.25% to 1.00% for the third time since the great recession of 2008. Generally speaking, higher interest is considered bullish for the US Dollar (USD) and vice versa.
Considering the overall technical and fundamental outlook, selling the precious metal around current levels appears to be a good strategy in short to medium term.