Gold : Sell on rallies : FxWirePro | November 2, 2017

• Gold 0.17% consolidating in narrow range between $1267 and $1281 for the past two trading session. The yellow metal is steady despite strong global equity markets and firm dollar. Dollar shown a mild change after Fed monetary policy meeting.

• Fed has kept its interest rates unchanged and upgraded growth assessment for first time in two years. Donald Trump’s is expected to appoint Jerome Powell as Fed chairperson today for replacing Yellen whose term expires early next year. Jerome Powell is expected to follow footsteps of Janet Yellen and also slightly dovish like our current Fed Chairmen. So it will have slight positive impact on Gold 0.17% .

• Major economic data to be released today is US initial jobless claims.

• US Dollar index -0.18% consolidates after hitting high of 95.15. The index is facing strong resistance at 95.20 (161.8% fibo) and any break above targets 96/96.51 level. It is currently trading around 94             .70. The pair is facing major support near 94             .15 (10- day MA) and any break below confirms minor weakness till 93.58 (55- day EMA )/92.60 likely.

• Technically gold 0.17% is facing near term resistance around $1285 (55- day EMA ) and any break above will take the pair to next level till $1290 (61.8% Fibo)/$1298. Overall bullish continuation can be seen if it closes above $1298(50- day MA).

• Gold’s near term support is around $1262 ( 61.8% retracement of $1204 and $1357.90) and break below will drag the commodity down till $1250.The yellow metal should close below $1250 for major trend reversal.

It is good to sell on rallies around $1278-$1280 with SL around $1286 for the TP of $1262/$1250.