FxWirePro: Gold trades lightly higher on dovish Yellen’s testimony, good to buy on dips
Gold recovered almost $21 from the low of $1204 after dovish Fed Chairman statement. The yellow metal jumped till $1225 and is currently trading around $1216. Fed chairman Janet Yellen said that central bank would gradua…
Gold recovered almost $21 from the low of $1204 after dovish Fed Chairman statement. The yellow metal jumped till $1225 and is currently trading around $1216.
Fed chairman Janet Yellen said that central bank would gradually tighten monetary policy as inflation puzzles. Chairman said U.S economy is robust and indicated that the Fed remained on course to begin reducing its bond holdings.
Gold’s near term support is around $1207 (50% retracement of $1122.75 and $1296.30) and break below will drag the commodity down till $1200/$1195. The yellow metal should break below $1180 for major trend reversal.
On the higher side, in the daily chart minor resistance is around $1226 (23.6% retracement of $1296 and $1204) and any break above will take the commodity till $1233 (21- day EMA))/$1243 (55- EMA).
It is good to buy on dips around $1210-$1213 with SL around $1200 for the TP of $1233/$1243.
