Gold comatose near $1209; FOMC statement 'virtual non-event'

Currently, Gold spot is trading at 1209.10, down -0.08% or (94)-pips on the day, having posted a daily high at 1213.24 and low at 1198.19.

As impressive as it seems, the metal is in the 'nowhere land' as the FOMC statement wasn't dovish or hawkish, basically, it had nothing valuable that traders and investors may grasp nor to be impressed. Furthermore, after 15-trading sessions, Gold spot still trades above the 50-DMA which validates the bullish market stand on the asset. 

Historical data available for traders and investors indicates during the last 5-weeks that Gold spot had the best trading day at +1.41% (Jan.5) or 1664-pips, and the worst at -1.11% (Jan.18) or (1331)-pips.

Trump uncertainty may keep pushing Gold higher

Reuters reports, "Some of Wall Street's largest fund managers have taken a contrarian bet on gold, wagering that U.S. President Donald Trump's governing style and upcoming elections in Europe will combine to create more stock market volatility and boost the prices of a metal long seen as a safe haven. Fund managers from IVA, Ridgeworth and Fidelity are among those who are bullish on gold at a time when the VIX, Wall Street's main measure of volatility, is near two-year lows amid a stock market rally that has pushed the S&P 500 up 6.5 percent since Election Day in November.

The report continues, "Funds have flowed out of the $30 billion SPDR Gold ETF for 10 out of the 11 weeks since Election Day, including a 1 percent decline in the week ended on Jan. 25, according to Lipper data. Gold prices are down 5.5 percent since the election and have fallen 10.5 percent over the last six months. The new administration has been widely expected to enact new policies that would boost the dollar and U.S. economic growth, cutting into the appeal of the metal. 

Technical levels to watch

In terms of technical levels, upside barriers are aligned at 1228 (100-SMA), then at 1265 (200-SMA) and above that at 1300 (psychological mark). While supports are aligned at 1193 (low Jan.31), later at 1175 (50-DMA) and below that at 1150 (horizontal support). On the other hand, Stochastic Oscillator (5,3,3) seems to reverse and head north, therefore, there is evidence to expect further Gold gains in the near term. 

Trump's toxic jawboning not the only reason for USD moves