Gold sits marginally above 11-day lows awaiting the directional cue from FOMC meetings.
Traditionally you would expect Gold to have appreciated with vigour due to the turmoil of the Russian Rouble, but this is clearly not the case. Instead it has remained in a volatile range and whipsaws around the $1200 level awaiting further direction, to the point that $1200 is a level which is not even worth monitoring at present.
The $1237 high last week respected a bearish trendline established in July and also marks the 20 week moving average. This paints a downside bias on the daily timeframe.
$1187.50 is a level worth watching because a break below here is likely to see a direct move to $1160 and favour traders with sell-stop orders. I have a fairly modest target to the downside due to the several technical levels of support here (Previous support; Monthly Pivot; Lower Bollinger Band on D1). A break blow $1160 will see bears licking their lips for a move to the $1132 lows at the 4-year lows.
An obvious catalyst is likely to be a hawkish FED (assuming they deliver of course) which will see the USD regain strength and Gold sell-off as a result.