Gold prices hover at record highs upon Fed’s dovish outlook
Robust momentum continued in Gold price throughout the early Asian session on Thursday as it jumped to a fresh record high of $3057.The Federal Reserve wrapped up the FOMC meeting yesterday with a dovish commentary expressing concerns over a slower economic growth in future coupled up with rising inflation. Fed now expects a possible uptick in the unemployment rate by the end of this year. Sluggish growth and higher unemployment may prompt the Fed to slash down the interest rate in near future which is positive for gold and negative for Dollar. Persistent weakness in the dollar index since its February peak is providing additional support to the yellow metal. Ever since Trump's inauguration as the 47th U.S. President, Dollar has depreciated over 6% against its major peers.
Technically, the RSI on the daily chart of gold sits above 70 level suggesting that prices are still in the overbought region, impeding investors from taking any fresh position. Crucial support at around $3023 may limit the downside however a correction below that mark may push the prices to the psychological level of $3000.
Contrarily, consolidation near the all time high would confirm further upside.
Gold Structure: Strong Bullish Candle on Daily, Breakout of Flag on 4hr.
Intraday Strategy/ Intraday Trend: Buy on Supports, Buy on Breakouts/ Bullish
Weekly Trend: Extreme Bullish
Major Resistance: 3058, 3083, Undefined
Major Support: 3045, 3041, 3033
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