FxWirePro: Gold holds above $1350 on dovish Fed, good to buy on dips

Major resistance - $1365

Major Support - $1332

US Fed has kept its interest rate unchanged at 2.25-2.50% as expected. But the major change in the Fed statement is that it has removed "patience" from an updated policy statement which has increased hopes of a rate cut in the year 2019. The dot plot clearly shows that nearly half of the members of the Fed committee expect to cut rates once or twice by this year 2019 (8 member call for one rate cut this year). The yellow metal hits high of $1355.20 and is currently trading around $1350.62.

US 10 year bond yield has declined more than 2% from a high of 2.084% after the Fed policy meeting. The yield and gold are inversely proportional to each other. It is currently trading around 2.03%.

On the higher side, near term resistance is around $1365-66 and any convincing break above targets $1380/$1398. Major trend reversal only above $1366.

The near term support is around $1335 (10- day MA) and any break below confirms minor weakness a dip till $1323 (38.2% fib)/$1318. Any major weakness only below $1318.

It is good to buy on dips around $1345-46 with SL around $1335 for the TP of $1366.