Gold has lost more than $15 after a slightly dovish rate cut by the Fed. The central bank Fed cuts rates by 25 bps to 1.75% -2% as expected with one more rate cut projected this year. The forecasts show that officials split on the need for more easing with vote 7-3. It hits an intraday low of $1485 and is trading around $1486.
US-10 year yield has jumped more than 2% from intraday low of 1.745% and spread narrowed to 3.5 bps from 7.6 bps.
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Major intraday support to be watched -$1486 and any break below targets $1475 (10-- W MA)/$1469.Minor weakness only below $1469.
Resistance -The yellow metal is facing strong intraday resistance around $1510-12 and any break above targets $1525/$1540.
It is good to sell on ralies around $1495-97 with SL around $1510 for the TP of $1460
Additional Levels
$1469-76 (50- day MA and 55- day EMA)
$1445 (38.2% fib)
$1414
$1390 (38.2% fib)
