The FOMC meeting filled the downbeat yellow metal with life. The metal is trading at a 2-week high. At yesterday's session, the metal managed to close above 2Dsma. Nothing changed in terms of fundamental and technical outlook for gold. Only the US dollar is losing its strength. Vice Chairman Stanley Fischer at the Economic Club of New York said, "Although the recovery has been slow, there has been significant cumulative progress. Liftoff should occur when the expected return from raising the interest rate outweighs the expected costs of doing so. In deciding when that time has come, we will continue to monitor a wide range of information regarding labor market conditions, inflation, and financial and international developments. We anticipate that it will be appropriate to raise the target range when there has been further improvement in the labor market. We are reasonably confident that inflation will move back to our 2 percent objective over the medium term." The current rally is a relief to bulls who were wounded heavily. They enjoyed a first strong weekly close in 2015. The precious metal is facing strong resistance between $1,192.00 and $1,195.00. Above these levels, we can expect $1,200.00 and $1,206.00. Intraday support is found at $1,184.00. We recommend selling below $1,184.00 with targets at $1,179.00, $1,177.50, $1,173.00, and $1,167.00 with sl $1,188.00. Weekly support is seen at $1,1770.00 and $1,167.00. Ahead of US series of data, gold is trading on a lower bias. In case the data turns out above expectations, we can expect a USD rally and gold prices under pressure. In case the data shows negative prints, especially CPI, we recommend buying above $1,192.00 with targets $1,199.00 and $1,206.00.
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