FXStreet (Mumbai) - Gold prices kicked-off the week on the back foot and remain cautious, with the recovery from 1070 levels losing steam on looming FOMC decision later this week. Gold holding on above 1070 mark Currently, gold modestly flat at 1075.80, keeping range near highs posted at 1076.90. Gold extends recovery from lows and remains supported this session on the back of heavy losses in the Asian equities, triggered by lower oil prices and nervousness ahead of the Fed policy announcement in the week ahead. The Fed is likely to raise rates at its Dec 16 meeting, with markets pricing-in 10-25 bps hike. However, the upside remains limited on the back of an inevitable Fed rate lift-off and a stronger US dollar across the board. The US dollar index gains 0.26% to 97.86 levels. Gold tends to suffer in a higher interest rate environment as it is a non-interest bearing investment asset. Meanwhile, amid lack of economic data in the day ahead, the bullion will take cues from the sentiment on the equities and track the USD moves. ------- What will 2016 bring to the Forex traders? Attend our Forex Forecast 2016 - The Panel with Ashraf Laidi, Valeria Bednarik, Boris Schlossberg, Adam Button, Ivan Delgado and Dale Pinkert. Register for the live event on Dec. 18th and get the recording too. ------- Gold Technical Levels The metal has an immediate resistance at 1079.40 (Dec 11 High) and 1086 (Dec 9 High). Meanwhile, the support stands at 1070 (round number), below which doors could open for 1064.40 (Dec 11 Low). For more information, read our latest forex news.