Sasha Singh
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Gold : Gain Seems Limited

Gold again is moving towards the positive territory after the Fed’s March meeting minutes showed that interest rates are likely to put on hold for some time in future. The policymakers were concerned about the low inflation and decided to keep interest rates on hold until inflation moves higher. The minutes also shows that Fed will continue its tapering program in further measured steps. Gold surged after the minutes were released.

On the 4 hour chart, gold rose from the support at 1300 and breaking the key resistance at 1317.28. It found resistance at 1324.52 and fall back from this level finding support at 1317.28. Gold still seems bearish to me as 50 day SMA is moving below 100 day SMA. However the upward sloping channel is showing that the pair will move up. It might also break the support trend line of the channel. If 50 day SMA crosses the 100 day SMA then this will give a bullish signal until then gains seems limited.