Gold 0.73% has shown a good recovery in Asian session on account of slight weakness in US dollar -0.31% . Fed’s monetary policy report released on Friday shows that the chance of Fed to hike rates more than thrice this year is very less. The yellow metal hits high of $1340 almost $14 and trading at $ 1338.
US dollar -0.31% has shown minor weakness almost 60 pips from the high of 90.24 and is trading at 89.61
With no major economic indicator release for both Europe and U.S . ECB president Draghi speech is major event for the day.
On the lower side, any break below $1318 (55- day EMA ) will drag the gold 0.73% down till 1316 (38.2% fibo)/$1309. Bearish continuation only if it breaks below $1305 level. The near term support is around $1330.
The yellow metal broken major resistance at $1336 (20- day MA) and any close above confirms further bullishness and a jump till $1342 (50% Fibo)/$1348/$1355. Overall bullish continuation only above $1366.
It is good to buy on dips around $1333-$1335 with SL around $1327 for the TP of $1347/$1351.
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