Gold stable above $1200, FOMC on sight

The precious metal has spent the last few hours trading in a narrow range around $1205 region, struggling to find direction before tomorrow's important FOMC event. At the moment, Gold is up 0.07% at $1205.08.

The negative sentiment surrounding American major indices amid falling oil prices is allowing the traditional safe-haven to hold on to its daily gains. However, investors should remain hesitant on taking heavy positions before tomorrow's all-important FOMC meeting.

Moody's: Fed rate rise would confirm policy makers set for monetary tightening course

Lately, Chinese data have been an important catalyst for the XAU/USD but that wasn't the case on Tuesday as the data failed to give a clear view of the economy. China’s retail sales came-in at 9.5% y/y in Jan, missing the estimate of 10.5%. Industrial production bettered estimates to print at 6.3%, while the urban investment number printed lower than estimates. 

Technical outlook

Supports for the precious metal are aligned at $1200 (psychological level), $1195 (Jan. 19 low) and $1185 (Fib. 50% of late Dec. to late Feb. uptrend). On the upside, the first hurdle lines up at $1222 (50-DMA), followed by $1230 (Fib. 23.6%) and $1236 (Mar. 5 high).