FxWirePro: Gold consolidates in a narrow range, good to sell on rallies
Major Support- $1490
Minor intraday resistance - $1508 (200- H MA)
Gold is consolidating in a narrow range between $1528 and $1493 for the past three trading days. The FOMC minutes showed that Fed officials viewed their rate cut last month as insurance against too-low inflation and weak growth. According to the FedWatch tool, the probability of 50 bps rate cut has slightly increased from 1.5% yesterday to 2.7% and 25 bps chance has reduced from 98.5% to 97.3%. The yellow metal hits an intraday low of $1498.80 and is currently trading around $1501.76.
Technically on the flip side major support is around $1492 and any violation below will drag the gold to the next level till $1480/$1468 (38.2% fib).
The near term resistance is at $1508 (200- H MA) and any jump above will take the yellow metal till $1517/$1528. Any major bullishness only above $1535.
It is good to sell on rallies around $1507-$1508 with SL around $1515 for the TP of $1490/$1480.