FxWirePro: Gold trade higher after Fed meeting, good to buy on dips

• Gold recovered sharply almost $17 from the low of $1240 made yesterday after US Fed monetary policy.  The US dollar index tumbled almost 70 pips from the yesterday high of 94.11. The yellow metal jumped till $1258.94. It is currently trading around $1258.04.
   
• The US fed raised interest rate by 25 bps to 1.50% in line with expectations. Fed raised the GDP growth forecast to 2.5% from 2.1% for the year of 2018 and to 2.1% form 2% for 2019. They have reduced the unemployment rate to 3.9% from 4.1% for 2018 and 2019. Inflation forecast were kept unchanged. The PCE is projected at 1.9% and 2.0% for the year 2018 and 2019 respectively. Fed has also kept its federal funds rate projections unchanged and this shows that fed officials saw no reason to hike rates drastically.
   
• On the higher side, near term resistance is around $1263 (233- day MA) and any break above will take the yellow metal to next level till $1269 (200- day EMA)/$1275 (55-day EMA).
   
• The near term major support is at $1236 and any violation below will drag the metal to next level till $1232 (161.8% retracement of $1305 and $1260.45)/$1223 (88.6% retracement of $1204.70 and $1357). Overall bullish invalidation only below $1200. The minor support is around $1520/$1243.

It is good to buy on dips around $1250-52 with SL around $1243 for the TP of $1263/$1269.