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Gold slips, eyes FOMC Meeting in the week ahead

FXStreet (Mumbai) - Gold prices on Comex fell in the Asian hours, after posting solid weekly gains, highest in six weeks ahead of Federal Reserve meeting due later this week.

Currently, gold prices trades at USD 1217.40/Oz, down -0.42% on the day, after having clocked a high of USD 1224.80/Oz in early Asian trading. Gold prices eased today amid expectations of interest rate hike on the horizon sooner than expected as Fed holds a policy meet on 16-17 December to provide guidance on the interest rate decision. The recent upbeat US consumer sentiment numbers which jumped to eight–year high boosted the US dollar, which also weighed on the yellow metal.

Moreover, declines in oil prices, which recorded fresh 5-1/2-year lows, dulled gold's appeal as a hedge against oil-led inflation.

Gold Technical Levels

The metal has an immediate resistance at 1220.82 (10-day SMA), above which gains could be extended to 1223.54 (50-day SMA) levels. Meanwhile, support stands at 1212.50 (200-day SMA), below which doors could open for 1208.20 (Oct 29 Low) levels.

DXY, US bonds and equities brace for the FOMC meeting – DBS

According to the DBS Team, for now the DXY is siding with bonds and equities as they brace for the FOMC meeting, after suffering due to the falling oil prices, with US 10Y bond yields easing to 2.08%.
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Position reductions in USD and EUR – Nomura

David Fritz and Jens Nordvig, Research Analysts at Nomura note that for the week ended December 9, non-commercial accounts sold $4.9bn of USD and bought $3.4bn of EUR which brought USD positioning off of its all-time high (from two weeks ago) and pulled EUR positioning further away from its local lows.
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