Gold heads for lower close since December ahead of FOMC

• Gold drops $7 on a stronger US Dollar. 
• Key event ahead: FOMC meeting. 

Gold dropped on Tuesday erasing yesterday’s gains. A stronger US Dollar ahead of the FOMC meeting pushed the yellow metal to the downside. 

On Monday, gold approached $1,320/oz and lost momentum. Today it moved with a bearish tone all day and accelerated the slide on American hours. It bottomed at $1,307.10/oz. Near the end of the day, Gold futures were trading at $1,309 headed toward the lowest close since December. 

The greenback strengthened ahead of the Fed meeting. The central bank is expected to raise interest rates that action is likely to be fully priced in. Market participants will look into the statement, staff projections and Powell’s press conference for signals about the timing of next hikes. 

US Dollar Index futures rose from 89.35 to 89.95, reaching the highest level since March 9. Among commodities, copper dropped for the fourth consecutive day, to the lowest in a month. During the last five days lost more than 2.40%. 

XAU/USD levels 

To the downside, immediate support might be located around $1,300 followed by $1,295 and $1,282. On the upside, resistances could be seen at $1,315, $1,322 (downtrend line) and $1,330.