FxWirePro: Gold trades higher after Fed meeting, good to buy on dips
Gold jumped almost $15 after US fed monetary policy. The yellow metal hits high of $1335 and shown a minor decline from that level. The main reason for jump is due to slight weakness in US dollar. DXY has declined sharpl…
Gold jumped almost $15 after US fed monetary policy. The yellow metal hits high of $1335 and shown a minor decline from that level. The main reason for jump is due to slight weakness in US dollar. DXY has declined sharply after hitting high of 90.45 (55- day EMA) and it is trading at 89.62.
US fed has hiked interest rates by 25bpbs and maintains its stance of three rate hike this year .US dollar declined sharply after slightly less hawkish stance by US fed. . Fed has upgraded US economic projection and signals faster pace in 2019.
The yellow metal has taken support near $1307 and shown a huge recovery till $1335. Any decline below $1320 will drag the yellow metal till $1313/$1307. Major support is around $1307 and any violation below will drag the gold down till $1303 (100- day MA)/ $1289 (200- day MA).
The near term resistance is around $1335 and any break above will take the yellow metal till $1341/$1345. Short term bullish continuation only above $1341.
It is good to buy on dips $1325-26 with SL around $1319 for the TP of $1340/$1345.
