FxWirePro: Gold trades well below 200- day MA, good to sell on rallies
Gold prices hits one month low yesterday and declined almost $20 after Fed monetary policy. The yellow metal breaks 200- MA and declined sharply below that level. U.S Fed kept its interest rates unchanged and it hints th…
Gold prices hits one month low yesterday and declined almost $20 after Fed monetary policy. The yellow metal breaks 200- MA and declined sharply below that level.
U.S Fed kept its interest rates unchanged and it hints that there is chance of two more rate hike. The central bank said in the statement that slowdown in Q1 is transitory and jobs growth remain solid.
ADP employment data shows U.S economy has added 177K down from the revised 255K jobs created in Mar.
Technically gold is facing strong support at 61.8% retracement (61.8% retracement of $1295 and 1195) and any break below will drag the yellow metal down till $1219 (100 – day MA). It should break below $1195 (Mar 10th 2017 low) for further weakness.
On the higher side, near term resistance is around $1264 (21- day EMA) and any break above targets $1280 (61.8% retracement of $1295.50 and $1254)/ $1295 (Apr 17th high)/$1300/$1318 (161.8% retracement of $1295 and $1265).
It is good to sell on rallies around $1260-$1262 with SL around $1272 for the TP of $1245/$1241.
