Support - $1296, $1287, $1283
Cautious Fed and a resulting sharp drop in Fed rate hike bets pushed gold above $1300 levels in Asia, although the 4-hour is overbought, while daily is entering overbought territory.
- Furthermore, dovish Fed was priced-into some extent, thus leaving doors for a technical correction to daily 5-MA level of $1287 levels.
- Gold's failure to take out/sustain above $1303 followed by a break below Asian session low of $1296 would signal a drop to $1287 levels.
- On the higher side, breach of $1303 on hourly closing basis could yield $1310-1312 levels.