FxWirePro: Gold trades higher on strong yen, good to buy on dips

• Gold has recovered almost $14 yesterday on increasing market’s safety concerns. The yellow metal formed a minor bottom at $1306.95 on Feb 8th 2018 and minor weakness only below that level. The commodity breaks the yesterday high of $1326.24 in Asian session. It is current trading around $1326.09.
   
• The yellow metal recovery was mainly due to turmoil in equity market across the globe and the first indicator which represents fear of investors faster than gold and VIX was yen. It is trading higher for the past one week. USD/JPY’s major support stands at 108 and any break below will drag the pair till 107.20/106.75. The yen and gold highly positive correlated with each other.
   
• On the lower side, any break below $1305 will drag the gold down till $1300/$1292. Bearish continuation only if it closes below $1292 level. The minor support is around $1314.
   
• The near term resistance is around $1334.85 (10- day MA) and any break above will take the commodity till $1340/$1344 (61.8% Fibo).

It is good to buy on dips around $1322-24 with SL around $1314 for the TP of $1336/$1340.