Gold is consolidating after hitting high of $1294.50 on Nov 22nd 2017.US Fed minutes shows that policy makers are highly positive on economy and predicted that rates will be raised in the future. But weak inflation is ca…
Gold is consolidating after hitting high of $1294.50 on Nov 22nd 2017.US Fed minutes shows that policy makers are highly positive on economy and predicted that rates will be raised in the future. But weak inflation is cause of concern and it will reduce the chance of more than three rate hike next year. The yellow metal is trading higher on weak US dollar and is currently trading around $1291.50.
Market are trading flat on US market holiday for thanks giving day yesterday and no major data to be released.
US Dollar index has declined after breaking major support 93.40. The index is facing strong support at 93 and any break below targets 92.59/92/91.62. It is currently trading around 93.89. The pair is facing intraday resistance around 93.95 (89- 4H EMA) and any break above will take the index to next level till 94.25/94.60/95.
Technically gold is facing near term resistance around $1300 and any break above will take the pair to next level till $1300/$1309.
Gold’s near term support is around $1284 (10- day MA) and break below will drag the commodity down till $1274/$1267.The yellow metal should close below $1262 (61.8% fibo) for major trend reversal.
It is good to sell on rallies around $1294-$1295 with SL around $1300 for the TP of $12.
