Gold price fired from 1279$ to 1286$ after FOMC announced no rate cut or hike last night. But it was a short lived rise in gold. As soon as Fed chairman Powell started delivering his speech , xauusd crashed dramatically and it tested new intraday low last night itself. Gold crashed from 1286$ to 1274$ and still continuing its slide from highs today.

Fed chairman hinted that inflation is main hurdle between a rate hike and a rate cut and he might not be that dovish in upcoming months. This single hint took gold from intraday highs to intraday lows.

Even Dow Jones crashed from 26650 to 26450 within hours. Stock & Precious metals market took a nose dive after fed statement. Dollar Index finally snapped its 4 year losing streak and recovered from lows. Dollar finally recovered from lows and it pressured gold price even more.

Today we have BOE monetary policy and US unemployment claims. Last week we seen rise in unemployment claims which pushed gold price higher. Today we need to see if claims are higher or lower than last week. It would give a fair idea about major data releasing tomorrow. Non farm payroll data would be releasing tomorrow and that would be final major data this month. So from tomorrow we will have clear view about gold price for entire month.

Currently gold price trading at 1272$. Good support in xauusd chart stands at 1266$. If traders break and sustain below 1266$. Then expect good pressure in this precious metal till 1260$- 1252$.

Resistance in gold chart stands at 1282$. If market break and sustain above 1282$. Then expect good rise in precious metal till 1290$- 1299$.

Conclusion: Comex Gold trend is weak for now. But avoid selling on this price and wait for rise to sell. Trade with strict stop loss.

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By marafat