FxWirePro: Gold Daily Outlook

• Gold has declined almost $20from the high of $1266 on account of strong US dollar index. The yellow metal has formed a temporary bottom around $1237 and shown a recovery of more than $25.US is planning to impose further tariff of $200 billion and global stock markets has lost more than 0.5% after the escalating trade war.The increase in geo political tensions might increase demand for safe haven assets such as gold. US dollar index has gained 70 pips from the low of 93.71.It is currently trading around 94.22.The index should break above 95.53 for further bullishness.
   
• The pair is facing strong trend support at $1239 (trend line joining $1046 and $1122) and any break below will take the yellow metal till $1234 (200- W MA) and any weekly close confirms further weakness.
   
• The near term resistance is around $1266 (20- day MA) and any convincing break above will take the yellow metal till $1270/$1275 (23.6% fib).

It is good to buy on dips around $1248-50 with SL around $1240 for the TP of $1270/$1275.