FxWirePro: Gold trades weak ahead of Fed meeting, good to sell on rallies

• Gold is showing a decline after forming temporary top around $1258.89. The yellow metal declined till $1244 and is currently trading around $1245.
   
• Market await US Fed monetary policy for further direction. U.S 10 year jumped highest in four months ahead of U.S Fed meeting. U.S 10 year yield jumped till 2.33% from 2.23%.
   
• Technically gold has formed doji in the daily chart and is trading weak for second consecutive day. A dip till $1230 (200- day MA) is possible.
   
• Gold’s near term support is around $1238 (10- day MA) and break below will drag the commodity down till $1230 (200- day MA)/$1207 (50% retracement of $1296 and $1122)/$1195. The yellow metal should break below $1180 for major trend reversal.
   
• On the higher side, in the daily chart minor resistance is around $1243 (55- EMA) and any break above will take the commodity till $1250/$1258.

It is good to sell on rallies around $1250 with SL around $1260 for the TP of $1238/$1230.