Gold extended gains, but a slower pace, as the news of interest rates hike by the Federal Reserve had been fully interpreted and digested by the market. The U.S. central bank raised interest rates by an expected 25 basis points for the second time in three months, with officials sticking to their outlook for two more rate hikes this year, instead of three more expected by economists. The dollar weakened, sending bullion higher. But the upward momentum slowed down after sharp gains. Dutch election relief curbed safe haven interest in gold as Dutch center-right Prime Minister Mark Rutte’s win kept geopolitical risks in Europe subdued, and, therefore, gold from rising.
On technical front, the long upper shadow line on chart shows that gold is losing steam after a two-day rally. Gold is expected to consolidate at current level, or pull back in coming sessions. Support and resistance can be found at $1,210 and $1,240 respectively.
Silver diverged from gold, falling on lack of drivers. On chart, the long upper shadow line indicates signs of mounting short positions. The MACD and momentum index also suggest a bearish tone. Support and resistance can be found at $16.8 and $17.5 respectively.

 
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