Gold futures a bit higher during the early trade in Europe last week as investors hold on to hefty moves ahead of key Federal Reserve two-day meeting.

Gold futures for the December delivery on Comex in New York was traded at $1,236.6 per troy ounce which was up 0.12 %. Prices varied from $1,232.5 to $1,239.1 per troy volume. The contract was able to add 0.29 % last week, notwithstanding reaching a nine-month bottom at $1,226.3 following a negative 2.7 % loss last week.

Silver for December delivery was able to hold ground for a 0.45 % daily gain at $18.703 per troy ounce, while palladium was up 0.29 % at $839.30. The October platinum was up 0.21 % at $1,366.30 respectively.

The most awaited September meeting for Federal Open Market Committee (FOMC), the Fed’s monetary-policy decision body started last week. A seventh straight $10billion cut in monthly government assets purchases is most likely steering quantitative easing programmes to a late-2015 close, with the Fed contemplating a rake hike following the QE programme having been concluded.

Both the QE programme conclusion and the benchmark lending rate which increases the boost of the value of the dollar, lowered the appeal of dollar-denominated commodities specifically that of gold.

The U.S. Dollar Index, which basically measures the strength of the greenback as compared with other major currencies, is circling a 15-month high as speculations build up in advance of the FOMC meeting and the support of positive economic data.

For now, the economic weakness in the Eurozone alerted the European Central Bank to stop the central lending rate to a historic low of 0.05 % which introduced further plans of a €3tn stimulus programme which pressured the euro to multi-year lows which consequently resulted to an additional support to the dollar.

Traders will most likely be looking at key economic sentiment assessments out of the German Zentrum für Europäische Wirtschaftsforschung (ZEW) noting both marks for Germany and the Eurozone are set to log on a lower scale albeit the enormous efforts by the ECB. In the coming weeks, features doe CPI readings will be set for slight changes from the recent negative figures. Moreover, on the radar is U.S. data with PPI figures which was recently released along with the CPI.

The Middle East and the Ukraine

The ongoing upheaval in the Middle East and Europe were all at the price of gold.

Ukrainian policy makers voted on an EU-association pact in which the said agreement will prompt protest to eventually subdue the entire conflict. An important aspect of the agreement was written off, yet as agreed with the Russian government, the ceasefire deal did push through.

In Europe, things appear to be dwindling with the conflict heading for a resolution. However, in the Middle East, war is not likely to be calming down, with the U.S. staging up air strikes against the ISIS. The recent talk held in Paris reinforced the commitment by the Arab states to fight the vile insurgencies plaguing the region.

In spite of the initial success of the extremist group, allegedly boasting some 30,000 men, it still remains isolated in the mostly deserted and inhospitable regions of Eastern Syria and Northwester Iraq. With the U.S. promising to see the ISIS defeated, traders can now be less apprehensive regarding the conflict’s economic corollary.

Resistance levels and Technical Support

Based on Binary Tribunes’ daily analysis, December gold’s central pivot point on the COMEX prevails at $1,233.5. Should futures manage to breach the first level of resistance at $1,240.8, the contract will most probably persist up to test of $1,246.4. Also, should the second resistance is breached as well, the precious metal will most likely try to advance to $1,253.7.

Finally, if the contract to breach the first key support at $1,227.9, it will most likely continue to slide and test $1,220.6 with the said second key support broken, the movement to the downside may possibly extend to the $1,215.0 level