FxWirePro: Gold trades lower ahead of Fed monetary policy, good to sell on rallies
Gold prices hits fresh three week low on Tuesday on account of Fed monetary policy. The yellow metal declined slightly below 200 –day MA and pared its losses from that level. U.S Fed is expected to keep its interest rate…
Gold prices hits fresh three week low on Tuesday on account of Fed monetary policy. The yellow metal declined slightly below 200 –day MA and pared its losses from that level.
U.S Fed is expected to keep its interest rates unchanged and Fed rate monitor tool says that 62.4% of traders expect Fed to hike rates by Jun.
U.S 10 year bond yield declined almost 1% to 2.30% ahead of Fed monetary policy.
Technically gold is facing strong support around 200- day MA and any close below will drag the commodity down till $1245 (50% retracement of $1195 and 1295)/$1241 (100- day EMA).
On the higher side, near term resistance is around $1264 (21- day EMA) and any break above targets $1280 (61.8% retracement of $1295.50 and $1254)/ $1295 (Apr 17th high)/$1300/$1318 (161.8% retracement of $1295 and $1265).
It is good to sell on rallies around $1260-$1262 with SL around $1272 for the TP of $1245/$1241.
