FxWirePro: Gold trades lower on hawkish Fed, good to sell on rallies
Gold continuing its weakness for fourth consecutive days and declined $10 yesterday. The yellow metal hits low of $1322.52 and trading at $ 1323.93. US dollar has shown good recovery almost 50 pips yesterday and is tradi…
Gold continuing its weakness for fourth consecutive days and declined $10 yesterday. The yellow metal hits low of $1322.52 and trading at $ 1323.93. US dollar has shown good recovery almost 50 pips yesterday and is trading at 90.10.
US Fed FOMC minutes meeting shows that most of the participants are positive on US economy and raised their growth forecast. The central bank stance was hawkish and investors expects amore that three rate hikes in a year.
On the lower side, any break below $1318 (55- day EMA) will drag the gold down till 1316 (38.2% fibo)/$1309. Bearish continuation only if it breaks below $1305 level.
The near term resistance is around $1336 (20- day MA) and any close above will take the commodity till $1342 (50% Fibo)/$1348/$1355. Overall bullish continuation only above $1366.
It is good to sell on rallies around $1327-29 with SL around $1336 for the TP of $1318/$1309.
