FxWirePro: Gold recovers on renewed geopolitical tensions, good to buy on dips

• Gold prices has halted its weakness after a one week continuous selling. The yellow metal recovered almost $15 from low of $1282 on account of renewed geo political tensions between US and China. US Fed minutes meeting published yesterday shows that all members agreed that inflation target should be meet in coming months. Fed minutes confirms that there will be 100% chance of rate hike in Jun. US 10 year bond yield has shown a decline nearly 5% from high of 3.1029%. USD/JPY has shown an intraday decline of almost 70 pips due to renewed geo political tensions. It is currently trading around 109.52. US dollar index declined slightly from the yesterday high of 94.19. The yellow metal hits high of $1298.20 and is currently trading around $1295.80.
   
• The yellow metals near term resistance at $1297 (55-W EMA) and any convincing break above will take the yellow metal till $1301.50 (Weekly Kijun-Sen)/ $1309 (34-W EMA). 
   
• On the lower side, near term support is around $1280 and any daily close below will drag the yellow metal down till $1269/$1263.

It is good to buy on dips around $1287-88 with SL around $1280 for the TP of $1306/$1309.