Gold weaker below $1210 ahead of US macro data and FOMC

Gold prices edged lower on Wednesday and snapped three consecutive days of winning streak to 5-day high touched yesterday. 

Currently trading around $1208 level, broad based US Dollar recovery, following yesterday's slump, has been a key factor weighing on dollar-denominated commodities - like gold. Moreover, a slight improvement in investors' risk-appetite, as depicted by a rebound in global equity markets, is further denting demand for traditional safe-haven assets and collaborating to the precious metal's retracement on Wednesday.

Meanwhile, possibilities of some profit-taking and (or) repositioning, ahead of today’s important US macro releases and the Fed monetary policy decision, could have also contributed to some selling pressure. Today's ADP report on private sector employment and US ISM manufacturing PMI - followed by the Fed announcement would provide fresh impetus for the metal's next leg of directional move. 

Technical levels to watch

A follow through retracement below $1205-03 immediate support seems to drag the commodity back below $1200 mark towards $1188 support level, with some intermediate support near $1195 region. On the upside, sustained momentum above $1210 level is likely to get extended towards two-month highs resistance near $1217-19 region above which the metal seems all set to head towards testing 100-day SMA resistance near $1227 region.