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FxWirePro: Gold hits 6-year high after Fed Williams speech, good to buy on dips

Gold is trading higher for 2nd consecutive day and jumped more than $30 after Fed Williams more dovish comment.US New York President Williams said on Thursday that the most effective strategy for the Fed is to cut rates at the first sign of trouble and this has increased hopes of 50 bpbs rate cut. According to CME's FedWatch tool, the chance of 50bpbs rate cut has increased from 23% to 60% in one week.

On the flip side, near term support is around $1430 and any break below will drag the yellow metal to the next level till $1420/$1412/$1400. Major weakness only below $1380.

The near term minor resistance is around $1450 and any break above will take the yellow metal to the next level till $1465/$1500.

It is good to buy on dips around $1425-28 with SL around $1412 for the TP of $1465.

 

By Rangarajan Hariharan
  • Market Data
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