Gold hovers around 5-DMA

FXStreet (Mumbai) - Gold prices on Comex continued to trade around a flatline, consolidating above 1150 levels, despite a sharp drop in the DXY, as traders remain on the sidelines ahead of the start of the two-day Federal Reserve meeting later in the day.

Gold cautious as FOMC Meeting commences later today

Currently, gold trades flat at 1154, having previously posted day’s high at 1156 and day’s low at 1151.20. Gold prices continued its accumulation phase awaiting direction from the US Fed that is expected to make an update on its forward guidance on Wednesday.

Moreover, a broadly weaker US dollar also failed to lift the yellow metal as traders await the outcome from the Fed's two-day policy meeting.

Meanwhile, holdings in the SPDR Gold Trust, the world's biggest gold-backed exchange-traded fund, remained unchanged at 750.67 tonnes on Monday.

Gold Technical Levels

The metal has an immediate resistance at 1160 and 1165 levels. Meanwhile, support stands at 1151.20 (Today’s low) levels below which doors could open for 1146.50 (March 11 Low) levels.

EUR/USD wavers ahead of key data sets

The EUR/USD is back below 1.06, after having set a session high of 1.0614 ahead of the Germany Zew survey data and the Eurozone CPI data. The shared currency could have retraced tracking fresh signs of weakness in the German Bund yields.
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LME Inventory Update

The warehouse stocks data released daily by the London Metal Exchange (LME) showed a drop in the inventory levels of Lead and Zinc. While Copper, Aluminium and Nickel stocks witnessed a built-up.
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