FxWirePro: Gold hits one month high, market eyes Fed policy

• Gold hits one month high and slightly consolidating at this level for past two days .Market eyes Fed monetary policy meeting which is going to happen on Wed .The yellow metal hits high of $1258 and is currently trading around $1257.98.
   
• FOMC meeting which is to be held tomorrow is highlight of the week and it is expected to keep its monetary policy unchanged. But any dovish comment by Fed will take the gold prices further up.
   
• Technically gold has closed well above 100- day MA ($1248) for the past two days and confirms minor bullishness.
   
• Gold’s near term support is around $1237 (21- day EMA) and break below will drag the commodity down till $1230 (10- day MA)/$1224 (61.8% retracement of $1204.98 and $1257.23). The yellow metal should break below $1195 for major trend reversal.
   
• On the higher side, in the daily chart minor resistance is around $1262 (61.85 retracement of $1375 and $112) and any break above will take the commodity till $1274/$1280/$1296.

It is good to buy on dips around $1248-$1250 with SL around $1237 for the TP of $1275/$1280.