•Gold edged lower almost $15 yesterday on account of ECB monetary policy. The yellow metal declined till $1271 and it is currently trading around $1275.
•ECB kept its interest rates unchanged at 0% and deposit rates at -0.4%.It has downgraded the inflation forecasts for three years and upgraded GDP growth. The forward guidance was less dovish and it shows there may not be further rate cuts in the near future. Euro declined slightly against dollar after the policy and dragged the gold prices down.
•In the 4 hours chart , gold’s near term support is around $1270 (89- 4H EMA and trend lien support) and break below will drag the commodity down till $1255 (200- 4 H EMA).
•On the higher side, minor resistance is around $1283 (21- 4H EMA) will take the commodity to next level till $1337/$1352.
It is good to sell on rallies around $1275-$1278 with SL around $1284 for the TP of $1256.
•ECB kept its interest rates unchanged at 0% and deposit rates at -0.4%.It has downgraded the inflation forecasts for three years and upgraded GDP growth. The forward guidance was less dovish and it shows there may not be further rate cuts in the near future. Euro declined slightly against dollar after the policy and dragged the gold prices down.
•In the 4 hours chart , gold’s near term support is around $1270 (89- 4H EMA and trend lien support) and break below will drag the commodity down till $1255 (200- 4 H EMA).
•On the higher side, minor resistance is around $1283 (21- 4H EMA) will take the commodity to next level till $1337/$1352.
It is good to sell on rallies around $1275-$1278 with SL around $1284 for the TP of $1256.