Dismal month-on-month US retail sales figure in the US pushed gold back to European session high of $1236/Oz, however the recovery was short-lived as the metal is back in the red around $1232/Oz levels. Investors fear hawkish Fed Buying interest in the yellow metal has dipped as investors fear the Fed may consider raising rates this year. Financial markets have digested the first rate hike well, while the labor market has remained resilient. Retail spending in annualized terms has held up as well (3.1% in Feb). Consequently, significant majority is of the belief the FOMC could come out hawkish tomorrow. Hence, the post-US data recovery proved to be short-lived. The metal could continue to track overall market sentiment ahead of tomorrow’s FOMC rate decision. Gold Technical Levels The immediate support is seen at 1227 (23.6% of Dec low-Mar high), under which prices could test bid around 1200 levels. On the other hand, a break above 1240 (Feb 18 high) would expose 1261.15 (previous day’s high). For more information, read our latest forex news.