FxWirerPro: Gold trades higher dovish Fed, good to buy on dips
Gold hits one week yesterday after Fed signals only gradual increase in rates. The yellow metal broken major resistance at $1212 and jumped sharply till $1227. Fed hiked interest rates by 25bpbs from 0.75% to 1% .But dov…
Gold hits one week yesterday after Fed signals only gradual increase in rates. The yellow metal broken major resistance at $1212 and jumped sharply till $1227.
Fed hiked interest rates by 25bpbs from 0.75% to 1% .But dovish Fed plot has dragged the US dollar down against all major pairs.
DXY has broken major support of 101 and declined till 100.41. The index is trading around 100.58 and minor weakness can be seen if the index closes below 100.60. It is currently trading around 100.59.
U.S 10 year bond yield fell 9.4 bpbs to 2.50% point after Fed policy meeting from 2-1/2 year high of 2.61%.
Technically, near term resistance is around $1229 (daily Kijun-Sen) and any break above will take the yellow metal till $1237 (61.8% retracement of $1263.95 and $1195)/$1247.
On the lower side , $1220 (21- day EMA) will be acting as major support and any break below will drag the gold down till $1208/$1196.
It is good to buy on dips around $1223 with SL around $1217 for the TP of $1237/$1245
