Yesterday gold prices rallied to have the best day single day rally in 4 weeks to close 1.38% higher, supported by the weaker dollar yesterday. Prices of gold is currently at $1,117.90/oz which is showing signs of downward pressure down 1.30% on the day. We could see further downward pressure if we get a Fed hike this afternoon. An opposite decision (not raising rates) could also be a potencial trade on the long side for the next coming days.
However, in my view, if there is a lift-off then the potencial for downside could possibly be more substancial, as the expectation on raising rates is about 30% by most analysts and also due to fundamental and technical reasons presented here.
Gold, Daily chart