FxWirePro: Gold hits 5-year high as US yield declines sharply on dovish Fed, good to buy on dips

Major Support - $1360-65 (resistance turned into support)

Gold is trading extremely bullish and jumped more than $40 after Fed meeting.US Fed has kept its interest rate unchanged at 2.25-2.50% as expected. It has removed the word "patience" in the updated policy statement which increases the chance of rate cut in 2019.

US 10 year bond yield has declined sharply below 2% lowest level since 2016. It hits a low of 1.97% and is currently trading at 2.00%. The yield and gold are inversely proportional to each other.

On the higher side, near term resistance is around $1400 and any convincing break above targets $1428/$1449.

The near term support is around $1376 (23.6% fib) and any break below confirms minor weakness a dip till $1360-65 (resistance turned into support)/$1346 (low made after Fed policy).

It is good to buy on dips around $1360-62 with SL around $1347 for the TP of $1380/$1390.