Gold eases from 4-week high in Asia, Fed in focus

Gold stalled its four-day winning streak and moved-off four-week highs during the Asian session this Tuesday, as focus now shifts towards Fed’s two-day monetary policy meeting commencing later today.

Gold holds above $ 1280

Currently, gold now trades -0.11% lower at 1281.30, having posted daily high at 1283.58 and day’s low at 1280.77. The bulls take a breather from the recent upsurge and consolidate the heavy gains as markets reposition themselves heading into the Fed meeting, which begins later in the NA session.

However, the bullion continues to find support from the Brexit-driven risk-off trades in the markets, with tumbling Asian equities making gold more attractive as a store of value/ safe-haven.

Meanwhile, the greenback continues to trade mixed against its major competitors and hence, lends support to the gold prices. Gold tends to benefit from a lower interest rates environment and a broadly weaker greenback.

The Fed is expected to sit tight on its interest rates decision, when officials announce their verdict on Wednesday.

Gold Technical Levels                                   

The metal has an immediate resistance at 1287.23 (4-week high) and 1300 (round number). Meanwhile, the support stands at 1273.72 (5-DMA) below which doors could open for 1260 (psychological levels).