Gold came under pressure yesterday after the hawkish Fed rate hike put a strong bid under the greenback. The yellow metal, which hit a five-month high at $1258 in the run-up prior to the FOMC rate decision, fell back to $1241 after the US central bank signaled it could raise rates twice in 2019, as opposed to the market's expectation that rate hikes will be paused in 2019. While waiting for the market to digest the news, Gold is pulling a recovery as the Dollar index weakens again after piercing the 97 figure.
After surging towards the $1258 level as expected, Gold prices fell back to reach $1241 as it lost momentum. The price is currently extending its recovery after receiving support from the $1241 level as it is hovering just below the $1250.26 resistance level. For now the direction is still not clear, but we expect to test near support and resistance levels.
Support: 1237.79 / 1234
Resistance: 1241.76 / 1247.5