Gold back on track as dollar resumes downside

Gold prices gained in Asian session on growing global tensions between Iran and U.S over a missile test this week by Tehran backed by a weaker dollar which resumed its slide post Fed outcome. A non-event Fed meet yesterday had caused a slip in gold prices as the comments suggested that the outlook of possible 3 rate hikes in this year still remained intact. On a positive note Gold yesterday closed above the $1208 mark obliging the support.

Technically gold is trading in a range between $1200-$1220 with prices facing a resistance/selling near $1219-$1220 levels and now the metal seems to find its feet at $1208 which though still remains a crucial pivot point for reversal in trend.
On chart-
The shaded area shows the range this metal can trade further into if it continues to stay above the $1210 mark. This shaded area has a high of $1295 and above which the metal can possibly test taking into account the ongoing tensions and worries. Though the metal faces a key resistance at $1248 which may not allow smooth sailing towards the highs. If successfully crossed the metal would hit into another resistance at $1275 (A) before touching the $1300 mark. Overall the bias is positive and the metal is expected to gain in coming weeks/months as worries are not looking to settle down in this year taking into account major political events lined up.



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