FxWirePro: Gold trades weak after hawkish comments by Fed Dudley, good to sell on rallies
Gold fell to a near 5- week low on Monday on account of firmer dollar. U.S dollar rose against all major pairs after hawkish comments from Fed top official Dudley. The yellow metal declined almost $12 yesterday and is cu…
Gold fell to a near 5- week low on Monday on account of firmer dollar. U.S dollar rose against all major pairs after hawkish comments from Fed top official Dudley. The yellow metal declined almost $12 yesterday and is currently trading around $1245.61.
Dollar strengthens after positive comments from New York Fed President William Dudley. He mentioned inflation will gradually get back to 2% and labor market continues to tighten further.
In the daily chart, gold’s near term support is around $1239 (100-MA) and break below will drag the commodity down till $1229 (38.2% retracement of $1126 and $1296).
On the higher side, minor resistance is around $1255 (55- EMA) and any break above will take the commodity till $1263 (38.2% retracement of $1296 and $1243) /$1269 (daily Kijun-Sen).
It is good to sell on rallies around $1250-$1252 with SL around $1263 for the TP of $1240/$1229.
