Gold is cooling off after going on a tear post-FOMC

• FOMC rate hike sends Dollar, indexes tumbling and Gold spiking upwards.
• Market has cooled but Gold may find support from continued Dollar weakness and trade tensions.

Gold has been drifting lower following the FOMC's rate hike that failed to meet market expectations. Participants were expecting a fourth rate hike to be added to the Fed's rate hike schedule along with the twenty-five basis point hike on Wednesday, but the dot plot currently stands at three and the US Dollar and equities sold off broadly across the market. Gold managed to climb to a fresh high of 1,336.66 on the back of the FOMC. The precious metal is now testing below 1,330.00 heading into the European session.

Profit-taking has been sapping some of Gold's recent gains, but with a noted lack of aggressive undertones in Jerome Powell's words, the brand-new head of the Fed, Dollar weakness may return to the forfront and give Gold a push higher over the medium-term, while ongoing tensions around a possible trade war from Trump's tariff debacle promises to keep the precious metal elevated in the near-term.

Gold levels to watch

after the FOMC-fueled spike, the only support rests at Monday's swing high at 1,319.00 and Tuesday's low of 1,307.00, while 1,340.00 sits above acting as major resistance with February's high of 1,361.75 above that.