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Gold struggles despite USD weakness ahead of FOMC

FXStreet (Mumbai) - Gold prices struggle to turn positive and extend gains despite USD being offered against the majors ahead of the FOMC rate decision.

Stuck around USD 1118/Oz

Prices are gyrating around USD 1118/Oz levels, even though rate hike bets in the US represented by the two-year treasury yield dropped leading to a fall in the USD index. The two-year yield now trades 2.4 basis points lower at 0.787%, while the USD index is down 0.23% around 95.28 levels.

However, the metal traders appear pinned on the sidelines as we move closer to the much awaited interest rate decision.

Gold Technical Levels

The immediate resistance is located at 1123.50 (Sep 9 high), above which gains could be extended to 1132.90 (Nov 2014 low). On the other side, support is located at 1113.50 (Sep 10 high) and 1100.00 levels.

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