GOLD
Traders eye the FOMC meeting and US inflation data. The US Fed is widely expected to cut another $10 billion from its monthly bond-purchasing program. Gold pulled back from the lower levels and paused its rally at 50-day SMA. Currently, it is trading at $1,270.50 levels.
As we recommended in our previous article, the fresh buying will take place only above $1,289 levels, but it made a high at $1,284.50 and corrected to 61.8 fib level. On the down side, the support levels are at $1,257.50 levels, below this, the bears can take the metal towards $1,250, $1,245.50 and $1,240 levels. On the other front, the metal has a rough road ahead between $1,285.50, 50-days SMA ($1,2288), 200-day SMA (orange line). Once the metal starts trading above the trend line, it can spike up to $1,297 (50-week SMA) and $1,309 (200-day EMA) levels to retest the broken trend line.
Positional-
Sell below $1,257.50. Buy above $1,289.
Intraday-
In yesterday's pull back the metal faced resistance at 21 Hr Sma and 34 Hr SMA ($1,272.80). The bulls will be back on track only above this, we prefer to buy above $1,273 levels for $1,274.90, $1,277.50 and $1,280.10 levels. On the down side, it has support at 35 HDEMA ($1,268 levels). We expect a sign of weakness below $1,267.50, bears can take the metal towards $1,262, $1,258.50, and $1,257.50. The panic selling will take place below $1,257.50 levels.
