FxWirePro: Gold trades higher on weak US dollar, good to buy on dips

• Gold recovers sharply in the previous week from the low of $1252. The yellow metal jumped almost $24 in the previous week. The main reason for jump is due to weakness of US dollar. US dollar shown a minor weakness after making a high of 94.03 and is currently trading around 93.27. Markets remain quiet as long weekend due to Christmas holiday. Any break below 93 (trend line support) will drag the index to next level till 92.50/91.92. The yellow metal jumped till $1278.98 and is currently trading around $1277.97.
   
• US durable goods order rose slightly less than expected. It has increased by 1.3% in Nov compared to forecast of 2%. The personal income of US rose 0.3% compared to forecast of 0.4% and personal spending increased to 0.6% vs 0.5% expected.
   
• On the higher side, gold is trading slightly above trend line resistance at $1275 and any convincing close above will take the yellow metal to next level till $1282/$1291/$1300. It should close above $1300 for further upside.
   
• The near term major support is at $1272 (50- day MA) and any violation below will drag the metal to next level till $1268 (200- day EMA)/$1260. Overall bullish invalidation only below $1200.

It is good to buy on dips around $1272-74 with SL around $1267 for the TP of $1290/$1300.