FxWirePro: Gold recovers slightly after less hawkish FOMC, good to buy on dips
Gold is consolidating in narrow range between $1313 and $1301.70 for past two trading days. The yellow metal weakness was mainly due to easing geo political tensions especially North Korea. US dollar index has shown a mi…
Gold is consolidating in narrow range between $1313 and $1301.70 for past two trading days. The yellow metal weakness was mainly due to easing geo political tensions especially North Korea. US dollar index has shown a minor decline till 92.39 after hitting high of till 92.83 after Fed FOMC statement.US 10 year yield has shown a minor recovery from low of 2.93% and is currently trading around 2.96%.
US Fed has kept its interest rates unchanged and more hawkish on inflation confirms 100% chance of rate hike in June. But the May month meeting failed to reveal anything on Fed’s dot plot. US economy has added 204k jobs for the month of Apr compared to forecast of 200K.The yellow metals near term resistance at $1313 (100- H MA) and any break above will take the yellow metal till $1316.50 (23.6% fibo)/$1320 (200- H MA)/$1326.
On the lower side, near term support is around $1302 (200- day MA) and any daily close below will drag the yellow metal down till $1294.
It is good to buy on dips around $1307-08 with SL around $1300 for the TP of $1320/$1325.
