Gold set for a rally, Dollar tired

Gold forecast today

Gold price tested 1298$ yesterday and then cracked till 1287$, which confused traders and charts as well. Last night Fed released its meeting minutes which suggested less aggressive federal and squash the rumors which indicated we may have more interest rate hikes than expected.

Fed meeting minutes indicates that fed will not hike any interest rate which is not in the book this year. It also indicates that Fed will remain on course to hike interest rate even next year.

Now we see 1281$ lows in gold is solid support for upcoming rally, A good hurdle on gold chart stands at 1302$. Once traders take this hurdle out and manage to sustain trade above our resistance. Then expect 1311$- 1320$ and even more rally in gold price not ruled out.

However if we manage to break support of 1281$ and sustain trade below our support. Then gold price may fall further upto 1275$- 1270$.

Gold forecast today conclusion: Gold trend is positive for now and we see limited downside. We will update more on this in our weekly newsletter. You may subscribe our newsletter for free. Sign up here

Dollar Index analysis

Fed meeting minutes put some pressure in dollar and dollar index gave a mild crack from 93.80 to 93.40. Currently its trading at 93.44. A good support on dollar chart stands at 93 & 92.80, Once traders tank this base and manage to sustain trade below our support. Then expect more pressure in dollar index upto 92.40- 92.

A good hurdle on dollar chart stands at 93.85, Once traders break this hurdle and manage to sustain trade above our resistance. Then expect more firepower in dollar upto 94.20- 94.40.

Dollar Index analysis conclusion: Dollar trend is still in positive zone so we wont take any sell trade for now, however once it breaks 93 and 92.80 we may suggest full sell. Keep an eye on these levels and follow us on twitter to see our dollar sell signal once it breaks.

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