In yesterday's trades gold dropped on profit booking. Regarding the FOMC minutes, we could expect an interest rate hike sooner than expected if the unemployment rate falls below 6.5. With the jobless rate falling faster than expected, even as other labor market indicators show weakness, policy makers agreed it would change rate guidance. The Indian government is likely to cut its import duty on gold by 2-3% expecting in this month due to the election period. Now the import duty stood at 10% Gold slowing going down trying to make some base near support levels.
In the hourly chart RSI favours bulls, a pullback is expected. Gold is creating some base around the levels of $1,308.0. Yesterday's low was $1,308.6. Today in Asia's trading session from last two hours, gold forming a base around the level of $1,308. If one more hour gold holds the recent low of $1,308.0, we can expect a slight pull back towards $1,313.0 and $1,315.50; RSI is supporting this view. Yesterday, gold broke the rising trend line. It is trading below this line and it is unable to cross it. Support becomes resistance here.
Intraday support-
S1 $1,308.0 R1 $1,316
S2 $1,300.0 R2 $1,318
In the daily chart gold breaks its eight days winning bids, this is the third trading day in a row coloured in red. RSI still favours bears at 67.
Positional-
S1 $1,300.0 R1 $1,322.5
S2 $1,282.0 R2 $1,332.0
