Little action in Gold as we head into the US session

Frankfurt (Dec 17)  Gold prices traded lackluster throughout the European session today as investors preferred to remain on the sidelines ahead of the all important Federal Reserve (Fed) policy statement, due for release later today.

The yellow metal traded in a narrow range of USD 1194-1200/Oz levels, occasionally dipping below the 50-DMA located at 1198 levels. The economic data released across Europe failed to have any impact on the yellow metal. That includes the Eurozone CPI data for November, which fell to 0.3% year-on-year.

Moreover, the gold markets lack clear cues as we head into the US session. The US dollar index appears to have consolidated after gaining 0.43% to trade at 88.44 levels. However, the 10-yr treasury yield is now up 2.3 basis points to 2.094%. The metal may see some action post the release of the US CPI data, although a real move would be seen as we near the Fed policy statement release.

Gold Technical Levels

Gold has an immediate support located at 1195.98 (50-DMA), under which prices could test 1186.40 levels (Dec. 5 low). Meanwhile, resistance is seen at 1209.26 – 1211.79 (5-DMA & 10-DMA) and 1217.59 (50-DMA).

Source: FXstreet