- Gold prices declined almost 1% yesterday due to Fed monetary policy meeting. The yellow metal declined almost $16 from the previous day close of $1320. It is currently trading around $1307.40.
- Fed is expected to keep its interest rates unchanged but investors will look for signals for normalization of balance sheet. Market also awaits President Trump speech tomorrow morning at U.N general assembly and his opinion about North Korea.
- US Dollar index is consolidating in narrow range between 91.58 and 92.66 for the past three trading days. The pair should close above 20 –day MA at 92.36 for further bullishness. Any close above will take the index till 93.11/94.15. The major near term support is around 91 and any break below will drag the index down till 90.
- U.S 10 year yield hits one – month high at 2.22% on increasing expectations of unwinding of its massive $4.5 trillion portfolio.
- According to CFTC latest Commitment of traders report shows that money managers has increased the speculative long positions for 9th consecutive week.
- Technically gold is facing minor resistance around $1327.75 (61.8% retracement of $1334 and $1314.59) and any break above will take the yellow metal till $1333 (10- day MA)/$1343/$1350/$1358.
- Gold’s near term support is around $1304 (34 day EMA) and break below will drag the commodity down till $1300.The yellow metal should break below $1250 for minor trend reversal.
It is good to sell on rallies around $1312-$1315 with SL around $1320 for the TP of $1305/$1300.


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