Gold sees a Doji candle on the monthly chart

By FXStreet FXStreet (Mumbai) – Gold monthly chart shows a Doji candle, which shows indecisiveness among traders after the Fed rate hike.

Hawkish hike restricts short covering

The 25 basis point rate hike was largely expected, but the hawkish Dot chart caught markets off guard. Consequently, the short covering rally ran out of steam at a high of USD 1078.40 levels. The metal now trades at around USD 1068/Oz levels; largely unchanged from the monthly opening price.

The hawkish hike has kept the USD strong in Asia, but it remains to be seen if the USD continues to move higher or witnesses a bout of profit taking as we move closer to the year end.

Gold Technical Levels

The immediate resistance is seen at 1069.68 (hourly 50-MA), above which the gains could be extended to 1080.48 (23.6% of Oct high- Dec low). A break below 1066.33 (hourly 200-MA), would expose 1058.41 (Dec 15 low).
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Source:: FX Street