FxWirePro: Gold trades flat, markets eye US fed monetary policy

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 – neutral (neutral for gold)- DXY has shown a minor jump of more than 40 pips from the low of 94.16. DXY is trading in narrow range and market awaits US fed meeting for further direction.The index has formed temporary top around 95.65. It is currently trading around 94.59.
    
2. USD/JPY- bullish (negative for gold)- It is showing a minor correction after hitting high of 111.85. It is trading well above 20- day MA and is expected to reach till 113. It is currently trading around 111.85.
    
3. US 10 –year yield – 2.97% (jumped more than 2% from yesterday’s low of 2.92%). Markets await US fed monetary policy.
4. US 2 year yield 2.669% (0.60% lower). The spread between 2 year and 10 year yield (2.97%-2.66%) is 31 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