Bullion Rolling in the deep, but the fever pitch will be set by Fed

Yesterday the precious metal touched a level, that has not been visited since February 2016 and marked a 10-month low at $1151. A fresh breath was taken today with a slight elevation towards $1164 -65 area, but it couldn’t last long. Currently Gold is trading at $1158.

The demand for safe-heavens seems now to be fading away, undermined by the  European equity markets that are tending to positive mood. Meanwhile the prospects of the upcoming Fed’s decision on rate hike actions will set additional pressure on Gold. The technical outlook shows price well below the moving averages. RSI is around 37 level and displaying lack of momentum. Stochastic has recovered form the negative territory but sill is supporting the bearish sentiment.

Immediate support is seen at $1151.30 (yesterday’s low). Resistance is located at $1165 and higher at $1180.