Gold climbs above $1330 as Fed leaves rates unchanged

Gold extended daily gains to almost $20 after Fed’s decision. It jumped to $1335, hitting the highest level since September 9. It pulled back afterward but managed to rise back above $1330.

Near the end of the American session it was trading at $1332, up 1.30% for the day and headed toward the first daily close above the 20-day moving average in two weeks.

The rally started during the European session and then rose further after the FOMC meeting and held near the highs during Yellen’s press conference. Gold rallied further amid a decline of the US dollar across the board.

The greenback dropped despite the message from the Fed that the case for a rate hike has strengthened, increasing the odds, according to market analysts, of a December rate hike.

XAU/USD Levels to watch

To the upside, resistance levels might be located at $1335 (daily high), $1345 (downtrend line) and $1352 (Sept high). On the opposite direction, support could be seen at $1324 (20-day moving average), $1312-10 (Sep 20 low) and $1306 (Sep 16 low).