FXStreet (Mumbai) - Gold fell back to USD 1118.85 (50% of Oct high-Dec low) after the bullish momentum ran out of steam in the NY session at USD 1122.95 levels. Eyes FOMC rate decision The markets expect the Fed to take note of the recent financial market instability and play down the rate hike bets; the way it did in September following August’s turmoil. However, policymakers have surprisingly remained optimistic despite risk aversion and manufacturing recession in the US. Hence, traders are cautious and unwilling to boost prices further ahead of the FOMC rate decision. The pair clocked a high of USD 1122.28 in Asia before relative calm in the equities pushed the metal lower. Gold Technical Levels The immediate support is seen at 1113.15 (Jan 8 high), under which the prices could drop to 1105.08 (50-DMA). On the other hand, a break above 1122.95 (previous day’s high) would open doors for a rally to 1136 (61.8% of Oct high-Dec low). For more information, read our latest forex news.