Gold’s failure to sustain above $1263 levels followed by a repeated failure to see daily closing above 50-DMA indicates prices could be heading towards head and shoulder neckline level of $1220 ahead of Fed rate decision.
Rise in treasury yields and a upbeat US durable goods data may add to bearish pressure around metal.
On the higher side, a daily close above 50-MA is essential for a re-test of $1263 levels.