FxWirePro: Gold trades in narrow range, good to buy on dips

• Gold is consolidating in narrow range after hitting high of $1325. The yellow metal was trading between $1313.54 and $1325 for the past three trading session. US dollar index shows a mild after slightly weaker than expected US non-farm payroll data. But slight improvement in wage growth is positive for US. Dollar. It is currently trading around $1319.50.
   
• According to latest commitment of traders report number of net long position has been increased by money managers for the week of Dec 19-26 mostly by speculators. The net fund position is at 420 tonnes increased 114.58 tonnes compared to previous week.
   
• On the higher side, gold is facing strong resistance at $1325 (127.2% fibo) and any break above will take the yellow metal till $1330/$1339 (161.8% retracement).
   
• The near term support is at $1309 (10- day MA) and any violation below will drag the metal to next level till $1304 (23.6% fibo)/$1300 /$1289 (100- day MA). Minor weakness below $1289 (100- day MA). Any break below $1287 will drag the gold till $1280/$1270.

It is good to buy on dips around $1314-$1315 with SL around $1305 for the TP of $1330/$1339.