Currently, gold rallied 1.36% at 1216.50 levels, having previously posted fresh session highs at 1217.30 levels some time ago.
The metal has an immediate resistance at 1222 (5-DMA) and 1237.53 (50-DMA) levels, finding support at 1208.70 (Jan 9 Low) levels below which doors could open for 1200 levels.
The Fed maintained its slightly dovish bias stating that raising rates too soon could hinder the fragile economic upside momentum, hurting the US dollar. And thus, gold prices quickly bounced-off sub 1200 levels and extended its uptrend.
Moreover, gold remains underpinned as traders continue
monitoring developments in Europe, where Greece is negotiating with its
creditors to resolve a debt crisis.
In the meantime, physical buying was likely to moderate even more as China enters into a week-long Lunar New Year holiday starting today. Also, holdings in the SPDR Gold Trust, the world's biggest gold-backed exchange-traded fund, stood at 768.26 tonnes on Tuesday.
