Gold dips below $1,221 support on a stronger dollar as the US Federal Reserve indicated they will continue to raise interest rates, lowering demand for bullion. Today, gold is highly depending upon technical indicators in the absence of economic events from the US.

Two reasons to expect further selling in Gold

GOLD – XAU/USD – 50 Periods EMA
On the 2 – hour chart, gold is trading below 20 and 50 periods EMA which indicates the bearish bias of traders. The 50- periods EMA prevails near $1,226, which means, technically gold should be trading near $1,226 level.

That’s the only reasonwhy I’m not entering a position at the moment as gold can go for bullish retracement below $1,222 before showing further selling.

Less-Dovish, More Hawkish FOMC & Stronger Dollar
The dollar advanced against its major peers as the US Federal Reserve held interest rates constant but reaffirmed its monetary policy tightening stance, anchoring the stage for a rate hike in December.

The dollar index, a gauge of its performance against six major peers, jumped to $96.63, causing a selling trend in gold.

Support Resistance
1222.38 1233.54
1218.28 1240.6
1207.12 1251.76
Key Trading Level: 1229.44