FxWirePro: Gold recovers slightly from low of $1308, market eyes US Fed meeting

• Gold declined almost $10 from yesterday’s low of $1307.70. The yellow metal was trading flat after a minor recovery till $1319.48 and market eyes US fed monetary policy for further direction. The main reason for recovery is due to slight weakness in US dollar.  DXY has de3cliend almost 60 pips from high of 90.36 and it is trading at 89.88.
   
• US fed is expected to hike interest rates by 25bpbs and investors eyes the road map for further hikes.
   
• The yellow metal has shown a minor jump after breaking major support at $1309.59. Any decline below $1307 will confirm minor decline and a dip till $1303 (100- day MA) likely.  Any violation below $1303 will drag the gold till $1289 (200- day MA).
   
• The near term resistance is around $1321 (55- day MA) and any break above will take the yellow metal till $1324 (20- day MA). Short term bullish continuation only above $1330.

It is good to buy on dips $1313-15 with SL around $1307 for the TP of $1329/$1336.