The yellow metal was not an exception, as it was likewise pressured lower by the stronger US Dollar during the previous session. This fall allowed bears to push the pair down to the senior channel and the 50.00% Fibonacci retracement near 1,302.00.
This sentiment changed during the Asian session when Gold recovered some loses and returned near the 55-hour SMA near 1,315.00. It is likely that the given area, reinforced by the 100-hour SMA and the 38.20% Fibo retracement, provides a strong resistance for the pair, thus limiting a surge during the first part of the day, at least. This might result in another decline down to the 1,300.00 mark.
The market could lack high volatility prior to the Fed Monetary Statement released at 1800GMT which is likely to guide the rate for the remaining part of the day.
