FxWirePro- Gold gains after dovish Fed, good to buy on dips

Ichimoku Analysis (4-Hour chart)

Tenken-Sen- $1726.96

Kijun-Sen- $1726.69

Gold price gained more than $15 after Fed monetary policy. The central bank hiked interest rates by 75 bpbs for the second consecutive month since 1980 and said that recent indicators of spending and production have "softened".  According to the fed, the job market remains robust and inflation remains elevated. The committee will monitor the implications of incoming information for the economic outlook. US dollar index pared most of its gains after dovish US fed policy. According to the CME Fed watch tool, the probability of a 50 bpbs rate hike in Sep dropped to 34% from 41.2% a day ago.

Factors to watch for gold price action-

Global stock market- Bullish (negative for gold)

US dollar index – Bearish(Negative for gold)

US10-year bond yield- Bearish (Positive for gold)

Technical:

The near–term support is around $1720, a breach below targets $1700/$1680/$1650/$1600.Significant reversal only below $1600. The yellow metal faces minor resistance around $1740, breach above will take it to the next level of $$1760/$1770/$1800.

It is good to buy on dips around with SL around $1750 for TP of $1650/$1600.