FxWirePro: Gold back above $1220 after FOMC minutes

• XAU/USD is currently trading around $1224 mark.
   
• It made intraday high at $1226 and low at $1222 levels.
   
• FOMC March meeting minutes failed to provide any hints regarding further interest rate hike.
   
• According to the March minutes, several expressed the view that a cautious approach for raising interest rates would be prudent.
   
• On the other side, some other participants indicated that an increase in the federal funds rate at the April meeting might well be warranted if economic data matches with the expectations.
   
• Even though the April rate hike is still unlikely as it puts more pressure on the June meeting.
   
• The central bank now expects future rate hikes to be more gradual, estimating only two 0.25-percentage-point increases, instead of the four projected earlier in December.
   
• Intraday bias remains bullish till the time pair holds key support at $1215 marks.
   
• A daily close above $1232 is required to turn the bias bullish again.


• On the top side, key resistances are seen around $1232, $1247 and $1252 levels.
   
• Alternatively, a sustained break below $1222 will drag the parity down towards key support levels at $1214, $1208, $1202 and $1190 marks.

We prefer to take long position in XAU/USD at $1224, stop loss $1220 and target $1232/$1247 marks.