FxWirePro: Gold Daily Outlook

• Gold prices has once again declined slightly after showing a minor jump above $1300.US trade war and Italian political uncertainty are two major events to be watched for gold movement. Italian political uncertainty has eased as political parties agreed to form coalition government. But renewed trade war between US and other countries is supporting prices of yellow metal. US has imposed import tariff on steel and aluminum product yesterday on EU, Mexico and Canada. US commerce secretary Wilbur Ross said EU companies would face 25% duty on steel and 10% duty on aluminum from midnight on Thursday.  The yellow metal hits high of $1306.49 and is currently trading around $1298. Market eyes US Nonfarm payroll which is to be released today for further direction.
   
• The major three factors to be watched for gold price movement are

1. US Dollar index – weak (positive for gold)
    
2. USDJPY- Weak (positive for gold)
    
3. US 10 –year yield – 2.88% (5% jump) (Slightly negative for gold)
    

• The yellow metals near term resistance at $1307 (200- day MA) and any convincing break above will take the yellow metal till $1316 (55- day EMA)/ $1324 (50% fibo). 
   
• On the lower side, near term support is around $1294 and any break below will drag the yellow metal down till $1285/$1280.

It is good to buy on dips around $1295-97 with SL around $1290 for the TP of $1308/$1316.