Gold volatile, but manages to hold $ 1200 post-FOMC

• Gold’s choppy trading extends post-Fed rate hike decision.
• Markets awaiting Powell’s speech for clarity on the FOMC statement.

Gold prices on Comex jumped to $ 1204.50 levels after the US dollar got broadly sold-off after the FOMC removed the reference to the accommodative monetary policy, which markets thought would keep the Fed away from hiking rates in the coming year.

Eyes on Powell’s speech

However, Fed’s optimistic outlook on the US economic growth and hawkish dot plot chart offered some support to the USD bulls, pushing the yellow metal back to 1201 region. The 'dots plot' chart showed 12 out of 16 members now see four rate hikes this year.

Traders will look for more trading impetus from the FOMC press conference, where President Powell will speak and address the Q&A session.

Gold Technical Levels

Higher Side Levels: 1210 (round number), 1215.80 (Sept 21 high), 1217 (Aug 28 high).

Lower Side Levels: 1200 (key support), 1197.80 (daily lows), 1190.40 (Sept 11 low).