Gold continued to lose ground early in the american session and currently is located in a minimum of two weeks, around the region of $1312-11.
The precious metal started the week bearish amid the growing investor appetite for riskier assets, which tends to decrease the demand of assets to traditional safe haven.
This together with a modest rise in yields of Treasury bonds of the united States, which underpinned demand for the us dollar, was more heavy on the commodities not denominated in dollars, and collaborated with the fall of the yellow metal to its lowest level since the end of August.
Now investors are looking forward to the highly anticipated FOMC meeting to get some new ideas about the short-term prospects of the monetary policy of the central bank, which eventually would help to determine the next stage of the directional movement for the metal.
Although it is expected that the Fed will keep interest rates unchanged, investors would be looking for their plans to begin to reduce its massive balance sheet of 4.5 billion dollars in an effort to normalize the monetary policy.
With the markets still setting the price in the probability around 60% for additional action by the rise in rates before the end of this year, any sign of aggressive would pave the way for a decline corrective additional short-term for the gold
Technical levels to watch
The immediate support is pegged near $1309-08, below which the metal is likely to accelerate the fall to test the level of $1300. To the upside, any attempt of recovery now go back to the level $1316, which is closely followed by resistance near the region of $1320.