 - EconoTimes)
Gold has declined nearly $9 after the release of Fed policy. The central bank lowers its rates by 25 bps as expected and removed the word "act as appropriate" from the statement. The FOMC members voted 8-2 unanimously for cut expect Esther George and Eric Rosengren. The Fed was optimistic about the economy and said that the labor market is strong, the unemployment rate remained low.
US 10-year has shown a nice recovery of more than 1% to 1.2% and is currently trading at around 1.823%. The spread between US -10 and 2-year has narrowed by 4 bps.
Technically, near term support is around $1480, any violation below will drag the yellow metal down till $1473/$1458. Major weakness only below $1458.
The near-term resistance is around $1515-17, a convincing break above will take the yellow metal to the next level $1525/$1540. Any bullish continuation only beyond $1555.
It is good to sell on rallies around $1485-86 with SL around $1495 for the TP of $1458.
