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  • Gold remains in daily consolidation range after FOMC statement.  
  • Risks titled to the downside as US dollar gains momentum.  

Gold rose to test daily highs at $1,227 after the release of the FOMC statement but failed to break higher and pulled back to $1,223, the same level it had before. The yellow metal continues to consolidate and remains so far above daily lows despite US dollar strength.  

The greenback gained momentum and printed fresh highs after the US central bank, as expected, left the Fed Funds rate at  2.00- 2.25%. The FOMC statement had no significant changes compared to the previous meeting. Market participants continue to see a December rate hike as very likely.  

Near the end of the US session, the US Dollar is gaining momentum that could increase the bearish pressure on gold. So far, XAU/USD continues to trade between $1,222 and $1,225 but risks appear to be tilted to the downside.  

XAU/USD Key Levels to watch  

To the downside, the immediate support to consider is the $1,220 area. A break lower would expose first $1215 and then $1,210. A daily close below $1,208 would offer signals of an extension to the downside, suggesting that a potential peak has been reached last month at $1,243.  

On the upside, the immediate relevant level is $1,227 (20-day moving average) and above is the $1,235 area. A close significantly above the last one could open the doors for a test of October highs and also for $1,250, as it would be breaking a strong barrier that limited the upside last month and also during recent days.