Gold fell sharply on the Fed (no QE) then rallied back toward the highs for the day. The rally back higher returned to the 38.2% and the 200 hour MA at the 1644.81 level (see chart above) The key technical level proved too hard to ignore as a profit taking area for those who bought near the lows. Look for sellers against the level with a stops on a move above.
On the downside, look for support at the 1637.07 area. If the price can hold this retracement level (see chart below), the bullish buyers are more believable. If the level gives way, additional support comes in at 1634.73. A move below that level (whick would breach the pre-FOMC low) would muddy the bullish waters.
