• Gold futures on the COMEX division of the New York Mercantile Exchange fell on Wednesday ahead of the Federal Open Market Committee (FOMC) announcement due after the market's close.
• The most active gold contract for March delivery fell 3.1 U.S. dollars, or 0.26 percent, to settle at 1,208.3 dollars per ounce.
• Silver for March delivery fell 9.3 cents, or 0.53 percent, to close at 17.45 dollars per ounce.
• Gold was put under pressure as a report released by the U.S.-based Institute for Supply Management (ISM) on Wednesday showed its manufacturing index increasing to 56.0 during the month of January.
• Traders are looking ahead to Friday’s U.S. employment report for January from the Labor Department. The key non-farm payrolls number of the report is expected to come in at up 175,000. However, with the stronger ADP report, the more important Friday jobs number could come in stronger than the present forecasts.
• Technically, April gold futures prices closed near mid-range on a technical pullback from the good gains scored Tuesday. The gold bears have the overall near-term technical advantage, but the bulls gained a bit of upside momentum earlier this week. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at the January high of $1,223.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at last week’s low of $1,182.60. First resistance is seen at this week’s high of $1,217.40 and then at $1,223.00. First support is seen at $1,200.00 and then at Tuesday’s low of $1,195.60. Wyckoff's Market Rating: 3.5.
Reference: Xinhua, Kitco
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