Dovish Fed supporting Gold


Gold price made another low ast night at 1323.40$ and bounced back to test 1330$ once again. Usually I would say this is because gold is very positive and market may fire more as gold did not hold on lower levels.

But gold price is trading in a very narrow range since it opened this week. Market is not able to break range of 10-11$ but continuing its movement in a very tight range. Yesterday Fed chairman delivered its statement and sounded dovish on upcoming rate hikes.

This gave a push to gold prices but market did not reacted the way it should have. Dow Jones went to test above 26170 and then reverted back. Currently dow jones trading below 26000 and gold is trading at 1327$. Both are under pressure.

Good support in gold price stands at 1318$. Once market break and sustain below 1318$. Then expect good pressure in this precious metal till 1308$- 1300$.

Resistance in gold price stands at 1334$. If traders break and sustain above 1334$. Then expect mid buying till 1340$- 1348$.

Conclusion: Comex Gold forecast is flat to positive for now.

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