The yellow metal plunged into a 2-week low after a stellar 10% return earlier this year. The selling pressure touched the metal after the Greek election results and the selling pressure turns to profit booking after the Federal Reserve meeting. The open interest declines are representing the long unwinding taking place during this week. After the FOMC meeting, the USD regained its strength putting pressure on the metal. In yesterday's economic data, the unemployment claims showed a decrease of 43,000; besides, pending home sales data was disappointing making a 3.7% decline. Today, the focus has shifted to the flash GDP.
In yesterday's fall, the metal broke below the 50Wsma at $1,267.00; gold is still trading below it. The intraday support exists between $1,253.50 and $1,249.50 at 200Dema levels. In case if the metal breaks below $1,249.50, bears can challenge towards $1,238.00, $1,235.00, and $1,226.00 in the near term. Today's closing will provide enough trading room in the near term. In yesterday's article, we recommended selling at $1,282.00 with the target at $1,255.00. Gold made a low at $1,251.80. Today, the strategy will be to use a rise to sell or to do fresh selling below $1,249.00 levels. The intraday resistance exists at $1,263.00, $1,270.00 and $1,276.00. Risky buying will be triggered above $1,263.00 with the targets at $1,270.00 and $1,273.00. Bulls can challenge a strong upward momentum, only above $1,285.50. So, use every rise to sell. Previously, we recommended fresh buying only above $1,309 for $1,340.00, which was not triggered. Now, the fresh buying has come down to $1,286.00 levels.
