FxWirePro:Gold faces strong resistance at $1180, good to sell on rallies
Gold dropped almost $14 form the yesterday high on account of higher dollar and Fed rate hike fears. It is currently trading around $1167. The European Central Bank has surprised the markets by scaling back its QE progra…
Gold dropped almost $14 form the yesterday high on account of higher dollar and Fed rate hike fears. It is currently trading around $1167.
The European Central Bank has surprised the markets by scaling back its QE program. It has reduced its bond buying program from the 80 billion Euros to 60 billion Euros and extended the timeline from Apr 2017 to Dec 2017.
Technically Gold is facing strong trend line resistance of $1180 (trend line joining $1197 and $1188) and any break above will take the pair till $1194/$1200. Any close above $1200 will take the yellow metal till $1217 (34- day EMA).
On the lower side any close below $1160 will take the bullion further down till $1147/$1130.The minor support is around $1170.
It is good to sell on rallies around $1170-72 with SL around $1180 for the TP of $1157/$1140.
