FxWirePro: Gold trades flat, market eyes US Fed meeting

• Gold declined almost $10 from yesterday’s high of $1318. The yellow metal was trading flat after a hitting low of $1307.70 and market eyes US fed monetary policy for further direction. The main reason for decline is due to slight recovery in US dollar.  DXY has recovered sharply and has broken major resistance at 90.36 and it is trading at 90.28.
   
• US fed is expected to hike interest rates by 25bpbs and investors eyes the road map for further hikes.
   
• The yellow metal has taken support near $1307 and shown a minor recovery till $1314.39. Any decline below $1307 will confirm minor decline and a dip till $1303 (100- day MA) likely.  Any violation below $1303 will drag the gold till $1289 (200- day MA).
   
• The near term resistance is around $1321 (55- day MA) and any break above will take the yellow metal till $1324 (20- day MA). Short term bullish continuation only above $1330.

It is good to buy on dips $1307-08 with SL around $1300 for the TP of $1321/$1329.