FxWirePro: Gold trades lower on slightly hawkish Fed, good to sell on rallies
Gold has lost more than $20 after a slightly dovish rate cut by the Fed. The central bank Fed cuts rates by 25 bps to 1.75% -2% as expected with a new dot plot not pointing any rate cut. Future rate actions depend on trade uncertainty, global data, and US inflation. It hits a low of $1483 and is trading around $1496.
US-10 year yield has jumped more than 4% from low of 1.745% after Hawkish Fed and spread narrowed sharply to 2.4 bps from 7.6 bps.
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Major intraday support to be watched -$1480 and any break below targets $1475 /$1469.Minor weakness only below $1469.
Resistance -The yellow metal is facing strong intraday resistance around $1510-12 and any break above targets $1525/$1540.
It is good to sell on rallies around $1501-02 with SL around $1512 for the TP of $1480/$1469.
