FxWirePro: Gold declines on hawkish Fed statement, good to sell on rallies

• Gold prices declined sharply below $1300 on account of hawkish US Fed statement. The yellow metal dipped till $1296 yesterday. It is currently trading around $1298..
   
• Fed has kept its interest rate unchanged and finally made formal announcement that it will start to taper QE by Oct. Fed futures are pricing in 73.4% chance of a Dec hike compared to 48.6% a week ago.
   
• US Dollar index recovered sharply and broken major resistance 92.66 high made on Sep 14th 2017 and jumped till 92.70. The pair has closed well above 20- day MA and a jump till 93.35 likely. 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 and half - month high at 2.28% after hawkish US Fed monetary statement.
   
• Technically gold is facing minor resistance around $1320 (20- day MA) and any break above will take the yellow metal till $1333 (10- day MA)/$1343/$1350/$1358.
   
• Gold’s near term support is around $1296 and break below will drag the commodity down till $1290 (55- day EMA)/$1280.The yellow metal should break below $1250 for major trend reversal. 

It is good to sell on rallies around $1305-$1308 with SL around $1320 for the TP of $1280/$1269.