FxWirePro: Gold Trades Lower on revived Rate Hike Expectations, Good to Sell on Rallies
- Gold has slightly retreated after making high of $1282 on revived rate hopes expectations.
- Atlanta Fed President Dennis Lockhart said on Tuesday that he still assumes there will be two to three rate hikes and Dallas Fed president said he will push for rate hike in Jun or Jul.
- The rate sensitive year yield hits three week high on 0.835%.
- Gold is currently trading around $1273. Short term trend is still weak as long as resistance $1289 (May 16th High).
- On the lower side major support is around $1265 (21 day MA) and any break below targets $1255/$1242.
- Gold faces resistance at $1283 and break above targets $1289/$1295/$1303.
It is good to sell on rallies around $1275-$1278 with SL around $1289 for the TP of $1265/$1255