- XAU/USD is currently trading around $1224 mark.
- It made intraday high at $1226 and low at $1222 levels.
- FOMC March meeting minutes failed to provide any hints regarding further interest rate hike.
- According to the March minutes, several expressed the view that a cautious approach for raising interest rates would be prudent.
- On the other side, some other participants indicated that an increase in the federal funds rate at the April meeting might well be warranted if economic data matches with the expectations.
- Even though the April rate hike is still unlikely as it puts more pressure on the June meeting.
- The central bank now expects future rate hikes to be more gradual, estimating only two 0.25-percentage-point increases, instead of the four projected earlier in December.
- Intraday bias remains bullish till the time pair holds key support at $1215 marks.
- A daily close above $1232 is required to turn the bias bullish again.
- On the top side, key resistances are seen around $1232, $1247 and $1252 levels.
- Alternatively, a sustained break below $1222 will drag the parity down towards key support levels at $1214, $1208, $1202 and $1190 marks.
We prefer to take long position in XAU/USD at $1224, stop loss $1220 and target $1232/$1247 marks.
