FxWirePro: Gold trades flat, markets eye US Fed meeting for further direction

Overall trend - bearish

• Gold is consolidating in narrow range between $1211 and $1234.95 for past three trading session. It is currently trading around $1221. 

The major three factors to be watched for gold price movement are

1. US Dollar index – slightly weak (positive for gold)- DXY has declined slightly after hitting high of 94.91.The index has formed temporary top around 95.65. It is currently trading around 94.35.
    
2. USD/JPY- bullish (negative for gold)- It is showing a minor correction after hitting high of 111.43. It is trading slightly above 20- day MA and is at 111.21.
    
3. US 10 –year yield – 2.95% (minor decline of 0.89% from yesterday’s close. Markets await US fed monetary policy).
    
4. US 2 year yield 2.67% (0.30% lower). The spread between 2 year and 10 year yield (2.97%-2.68%) is 28 basis point slightly decreased from 34 basis point.

The pair is facing strong support at $1217 and any break below will take the yellow metal till $1209/ $1200 (61.8% fib)/$1160.

The near term resistance is around $1240 (20-day MA) and any convincing break above will take the yellow metal till $1250/$1260.

It is good to sell on rallies around $1228-30 with SL around $1237 for the TP of $1201/$11