Gold trades weak after Fed raises interest rates,sell on rallies
•Gold shown a huge sell off after hitting intraday high of $1281 yesterday. The yellow metal declined sharply after Fed hikes interest rates. Gold lost almost $24 and is currently trading around $1263.92.
•Fed raised its interest rates by 25bps point for the third time on six months from 1% to 1.25% and maintained outlook for one more hike in 2017. Fed also unveils plan to reduce $4.5 trillion balance sheet this year.
•In the daily chart , gold’s near term support is around $1256 (55-EMA) and break below will drag the commodity down till $1250 (89 day EMA)/$1240 (200- MA).
•On the higher side, minor resistance is around $1282 (61.8% retracement of $1296 and $1257.30) will take the commodity to next level till $1296/$1310.
It is good to sell on rallies around $1272 with SL around $1282 for the TP of $1256.
•Fed raised its interest rates by 25bps point for the third time on six months from 1% to 1.25% and maintained outlook for one more hike in 2017. Fed also unveils plan to reduce $4.5 trillion balance sheet this year.
•In the daily chart , gold’s near term support is around $1256 (55-EMA) and break below will drag the commodity down till $1250 (89 day EMA)/$1240 (200- MA).
•On the higher side, minor resistance is around $1282 (61.8% retracement of $1296 and $1257.30) will take the commodity to next level till $1296/$1310.
It is good to sell on rallies around $1272 with SL around $1282 for the TP of $1256.
