Gold ready to glitter back again

Gold and gold mining stocks have been under pressure for quite a while due to higher dollar and has struggled to rally resulting in extremely oversold conditions.
Even though making a new low last week the sector seems to be set up for a rebounding phase.
The ever so crucial Federal Reserve of America policy outcome on Wednesday can strike a bullish tone as a rate hike has already been factored in the price confirmed by a combination of a higher dollar index and a grinding lower precious metal prices.(A higher dollar index has long been slated as extremely negative for precious metals).
Even a hawkish commentary might not be able to push gold prices to a new low as most negativity is already in the price thus making the situation highly likely for a rebound in the precious metal sector.

Technically gold is having a key support at $1144, with the range of $1144-$1162 acting as a wide support in the chart.
A test of $1144 before rebounding may not be ruled out either which can be a possibility on the policy day.
Daily Gold chart showing the key support lines.
golddaily20161212101409

For gold stocks, it would be a similar to gold price movement, that is they can also move a little bit down before start of the rebound.

Above technicals have a conflicting scenario that gold and gold mining stocks could drop a little bit more before starting the rebound. This drop may happen immediately after the policy by Federal Reserve of America is announced on Wednesday.
Once this is over the sector could be in a position to a Post-Fed rally as expected.

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