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Gold for delivery in February, the most active contract on the Comex market in New York, hit a low of $1,127.30 an ounce, levels not seen since the beginning of February this year. Gold has now trimmed its year to date gains to just under 7%.

The most active gold contract for February delivery fell 9.1 U.S. dollars, or 0.80 percent, to settle at 1,133.60 dollars per ounce.

With the U.S. Federal Reserve's rate hike just passed, investors believe the Fed may raise rates from 0.75 to 1.00 during the March FOMC meeting at the earliest. According to the CME Group's Fedwatch tool, the current implied probability of a hike from 0.50 to at least 0.75 is at 4 percent at the February meeting and 21 percent for the March meeting.

Technically, February gold futures prices closed near mid-range. The gold bears have the solid overall near-term technical advantage. There are no early clues of a market bottom. Prices are in a six-month-old downtrend on the daily bar chart. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at last week’s high of $1,168.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,100.00. First resistance is seen at this week’s high of $1,144.40 and then at $1,150.00. First support is seen at last week’s low of $1,124.30 and then at $1,120.00. Wyckoff's Market Rating: 1.5