FxWirePro: Gold trades slightly above $1200 level on weak US dollar,good to buy on dips

Major resistance- $1210 (34- day EMA)

The major three factors that drive gold prices

US dollar Index: Trend Bearish. DXY upside capped by 38.2% fib. It hits high of 95.71 and declined more than 70 pips from the high. Short term trend is weak as long as resistance 95.71 holds. (Slightly positive for Gold).

USDJPY: Trend slightly Bearish. The pair has lost almost 50 pips form the high of 111.48. The near term resistance is around 111.48 and any break above targets 112.15.Slightly positive for gold.

US 10 year yield : It has lost almost 1.5% from the high of 2.85%.It has declined more than 7% from the high of 3.0160% which is slightly positive for gold.

US 2 year yield: The spread between US 10 year and 2 year has reduced to 20 bpbs from 35 bpbs.

Gold technical

Major support  $1183

Major resistance - $1210 (34- day MA)

The pair has taken support at $1183 and jumped more than $25 on Friday. The pair hits high of $1208 and is currently trading around $1206. The trend is bullish as long as support $1183 holds.

On the higher side, any break above $1210 will take the commodity till $1218/$1228.

It is good to buy on dips around $1200 with SL around $1193 for the TP of .