FxWirePro: Gold rebounds from the one-month low after dovish speech by Fed chair Yellen

• XAU/USD is currently trading around $1237 mark.
   
• It made intraday high at $1242 and low at $1236 levels.
   
• Yellen kept her cautious approach regarding the monetary tightening pace, despite a faster-than-expected rise in certain inflation indices closely monitored by the Fed, while the labour market continued to show strengthening signs.
   
• Gold futures spiked 1.27% to $1,235.60 an ounce, extending the rebound from the one-month low of $1,208.00 touched on March 28, 2016.
   
• Intraday bias remains bullish till the time pair holds initial support at $1215 marks.
   
• A daily close above $1242 is necessary to turn the bias bullish again.
   
• On the top side, key resistances are seen around $1242, $1247 and $1252 levels.


• Alternatively, a sustained break below $1215 will drag the parity down towards key support levels at $1202, $1195 and $1190 marks.
   
• Later today U.S. will release ADP job data. This will provide further direction to the parity.

We prefer to take long position in XAU/USD around $1235, stop loss $1227 and target $1242/ $1247 marks.