- Gold increased sharply almost $20 yesterday on account of weaker US dollar. The yellow metal hits fresh year high at $1357 and is currently trading around $1354.82.
- Euro hits 33- month high after ECB meeting. President Draghi mentioned that growth in the Eurozone is solid and indicated the scaling back its quantitative easing programme would be informed next month.
- DXY has broken major support of 91.62 and declined till 91.01 at the time of writng. Any break above 93.11 confirms minor bullishness a jump till 94.15 likely. Major trend reversal can be seen only above 94.15 level.
- U.S 10 year yield has declined further till 2.03% 10 month low and is currently trading around 2.06%.
- Technically gold is facing major resistance around $1358 and any break above will take the yellow metal to new year high at $1377.50 Jul 2016 highs.
- Gold’s near term support is around $1343 (23.6% fibo) and break below will drag the commodity down till $1336 (5- day MA)/ $1330.The yellow metal should break below $1250 for minor trend reversal.
It is good to buy gold on dips around $1343 with SL around $1330 for the TP of $1375.
