- Gold is consolidating after hitting fresh year high of $1339.44. The yellow metal slightly declined till $1332 and is currently trading around $1335.
- The prices have spiked as a result of ongoing tensions surrounding North Korea and its nuclear program.
- DXY shown a minor recovery after hitting low of 92.10 level on Friday. Any break above 93.60 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 shown a minor recovery form the low of 2.09% 10 month low. The yield is currently trading around 2.16%.
- The latest commitment of traders report shows the increase in long position for seventh consecutive week and short position was at 13000 contracts lowest level since 2012.
- Technically gold is facing major resistance around $1343 and any break above will take the yellow metal to new year high at 1353 (161.8% retracement of $1295 and $1204.35)/$1377.50 Jul 2016 highs.
- Gold’s near term support is around $1324 (5- day MA) and break below will drag the commodity down till $1316/1310 (10-day MA)/ $1296/ $1275 (Aug 25th low) /$1269 (55- day EMA).The yellow metal should break below $1250 for minor trend reversal.
It is good to buy gold on dips around $1323-25 with SL around $1316 for the TP of $1340/$1350.
