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GOLD: Holding at 2014 Year low waiting for the Fed press conference

The US dollar fell for a second straight day against major currencies on yesterday session, pressured again by unexpectedly weak US economic data and all eyes turn to the two-day policy meeting by the Fed that began Tuesday and ends today afternoon.

Investors are speculating about the timing of the FOMC raising interest rates, with some calculation a hike could come as early as June and others wondering if a rate increase will even occur this year. The FOMC will also release its latest economic projections today, and Fed Chair Janet Yellen will hold a press conference after the FOMC meeting.

Gold initially rose but found enough selling pressure on the 10-day moving average to turn around and close in the red in the middle of the daily range. The precious metal fell 5.26% since the start of March and is in a bearish phase. The Stochastic is showing an oversold market setting higher lows and price is making lower lows, signs that the downside may begin to get exhausted.

Expecting an upward move to a daily resistance at 1,182.47 on a break above previous day high at 1,159.73 (scenario 1).