Key Resistance: 1197.45 - 1200.25 - 1203.59 - 1207.89
Key Support: 1193.70 - 1190.55 - 1188.10 - 1184.22
Day Trading Range: 1186 - 1204
RSI: Indicator shows down side momentum, moving around below 50 level.
MACD: loosing bulls side power.
Moving Average: 55 (1200) & 200 (1198) both are strong resistance for Gold today.
Technical Trade Idea:
Most Likely Scenario: long positions above 1193.70 with targets at 1200.45 & 1204.55 in extension.
Alternative scenario: below 1193.70 look for further downside with 1190.25 & 1187.25 as targets.
Overall, Gold is still range bound with support levels lined up at 1193.90, 1192.70, 1189.50 and 1187.50. Technically, the trigger point for an acceleration to the downside is 1187.50. This is because under this level, there is no support until $1167.10. If buyers continue to come in to defend 1193.90 to 1187.50, then this could generate enough counter-trend momentum to fuel a rally into 1205.90 then possibly 1215.10.
Gold futures closed lower on Wednesday mostly in reaction to the Fed’s widely expected rate hike. However, there was a little improvement late in the session after the initial reaction to the news as traders interpreted the Fed’s statement and comments from Fed Chair Jerome Powell as dovish.
Gold could pick up a bid on Thursday if investors continue to price in a dovish Fed. Furthermore, the market could get support from lower Treasury yields, a softer U.S. Dollar and a drop in demand for higher-yielding assets.