FxWirePro: Gold trades higher after dovish Fed statement, good to buy on dips

• Gold recovered sharply after hitting an intraday low of $1243 yesterday on account of dovish Fed. The yellow metal jumped till $1265 at the time of writing and is currently trading around $1264.
   
• Fed kept its interest rate unchanged and decided to maintain its target range for the federal funds rate at 1 to 1.25%. It also mentioned in the statement that Fed is planning to implement balance sheet normalization programme very soon.
   
• Technically gold has broken major resistance around $1258 and is trading slightly above that level.
   
• Gold’s near term support is around $1243 (10- day MA) and break below will drag the commodity down till $1230 (200- day MA)/$1220. The yellow metal should break below $1195 for major trend reversal.
   
• On the higher side, in the daily chart minor resistance is around $1265  and any break above will take the commodity till $1280 (61.8% retracement of $1375 and $1122)/$1295.

It is good to buy on dips around $1260 with SL around $1252 for the TP of $1280.