Gold is continuing its weakness and declined more than $15 in this week. Overall it has lost more than $70 dollar from the high of $1309.20 made on Jun 14th 2018 on account of surging US dollar against all majors. US dol…
Gold is continuing its weakness and declined more than $15 in this week. Overall it has lost more than $70 dollar from the high of $1309.20 made on Jun 14th 2018 on account of surging US dollar against all majors. US dollar has showed a minor jump after hitting low of 94.53.The policy divergence between ECB and Fed is supporting prices of US dollar index. The trade war has increased geo political tension between major economies. But yellow metal has lost its shine as safe haven demand. The rising US yield and interest rate hike by fed is dragging gold prices down.
The pair is facing strong trend support at $1239 (trend line joining $1046 and $1122) and any break below will take the yellow metal till $1234 (200- W MA) and any weekly close confirms further weakness.
The near term resistance is around $1260 and any break above will take the yellow metal till $1270/$1275 (23.6% fib).
It is good to buy on dips around $1240-42 with SL around $1235 for the TP of $1260/$1275.
