Gold -0.18% recovered slightly from five month low of $1236.25 made yesterday. The yellow metal is consolidating in narrow range ahead of Fed meeting. It is currently trading around $1244.55.
The US fed is expected to raise interest rates by 25bpbs and markets already factored the rate hike. Any hawkish comment on interest rates from fed will drag the gold -0.18% prices further down.
On the higher side, near term resistance is around $1251 (23.6% retracement of $1299 and $1240.26) and any break above will take the yellow metal to next level till $1260/$1269 (200- day EMA ).
The near term support is at $1236 and any violation below will drag the metal to next level till $1232 (161.8% retracement of $1305 and $1260.45)/$1223 ( 88.6% retracement of $1204.70 and $1357). Overall bullish invalidation only below $1200.
It is good to buy on dips around $1240-42 with SL around $1235 for the TP of $1251/$1260.
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