Gold is still bounded in range of 1187.58/1214.30 after FOMC triggered volatility. Outlook remains unchanged for now. While more consolidation could be seen, another rise is in favor as long as 1187.58 support holds. Break of 1214.30 will extend the rebound from 1160.36 and target 38.2% retracement of 1365.24 to 1160.36 at 1238.62.
However, as such rebound is seen as a corrective move, we’d expect strong resistance from 1238.62 to limit upside. On the downside, break of 1187.58 will suggest that the rebound is completed and bring retest of 1160.36 low.
