FxWirePro: Gold trades slightly higher after FOMC minutes, good to buy on dips
Gold has bounced back after hitting eight week low of $1217 yesterday after Fed FOMC minutes and geopolitical tensions. The yellow metal shown a minor jump till $1229.30 at the time of writing and is currently trading ar…
Gold has bounced back after hitting eight week low of $1217 yesterday after Fed FOMC minutes and geopolitical tensions. The yellow metal shown a minor jump till $1229.30 at the time of writing and is currently trading around $1225.63
Fed policy makers divided over timing of balance sheet reduction. Central bank was spilt on how inflation affect the future pace of interest rate hikes. The market took this spilt opinions on timing of the balance sheet tapering as bullish factor.
Gold’s near term support is around $1217 (May 9th 2017 low) and break below will drag the commodity down till $1214/$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 $1235 (200 day MA) and any break above will take the commodity till $1248 (89- day EMA)/$1258.
It is good to buy on dips around $1223 with SL around $1215 for the TP of $1235/$1248
