FXWIREPRO: Gold Rebounds from the One-Month Low After Dovish Speech by Fed Chair Yellen
- XAU/USD is currently trading around $1235 mark.
- It made intraday high at $1242 and low at $1236 levels.
- Yellen kept her cautious approach regarding the monetary tightening pace, despite a faster-than-expected rise in certain inflation indices closely monitored by the Fed, while the labour market continued to show strengthening signs.
- Gold futures spiked 1.27% to $1,235.60 an ounce, extending the rebound from the one-month low of $1,208.00 touched on March 28, 2016.
- Intraday bias remains bullish till the time pair holds initial support at $1215 marks.
- A daily close above $1242 is necessary to turn the bias bullish again.
- On the top side, key resistances are seen around $1242, $1247 and $1252 levels.
- Alternatively, a sustained break below $1215 will drag the parity down towards key support levels at $1202, $1195 and $1190 marks.
- Later today U.S. will release ADP job data. This will provide further direction to the parity.
We prefer to take long position in XAU/USD around $1235, stop loss $1227 and target $1242/ $1247 marks.
The material has been provided by InstaForex Company - www.instaforex.com