FxWirePro: Gold trend line break out

• Gold recovered slightly from five month low of $1236.25 made yesterday. The yellow metal is consolidating in narrow range ahead of Fed meeting. It is currently trading around $1243.85.
   
• The US fed is expected to raise interest rates by 25bpbs and markets already factored the rate hike. Any hawkish comment on interest rates from fed will drag the gold prices further down.
   
• On the higher side, near term resistance is around $1251 (23.6% retracement of $1299 and $1240.26) and any break above will take the yellow metal to next level till $1260/$1269 (200- day EMA).
   
• The near term support is at $1236 and any violation below will drag the metal to next level till $1232 (161.8% retracement of $1305 and $1260.45)/$1223 (88.6% retracement of $1204.70 and $1357). Overall bullish invalidation only below $1200.

It is good to buy on dips around $1240-42 with SL around $1235 for the TP of $1251/$1260.