FxWirePro: Gold Daily Outlook

• Gold edged slightly up from 5- week low on account of weak global equity market and political tension. U.S dollar index rose sharply till 97.87 after a minor bottom around 96.32 as a key U.S Federal reserve official Dudley confirmed the central bank’s hawkish stance on interest rates. The yellow metal recovered around $6 from the low of $1241 and is currently trading around $1246.33.
   
• Political tensions in Britain and U.S is supporting the bullion prices. Brexit negotiations begins in Brussels on Monday which will set the terms for U.K’s divorce from the EU.
   
• Gold’s near term support is around $1239 (100-MA) and break below will drag the commodity down till $1229 (38.2% retracement of $1126 and $1296). The yellow metal has taken support near 100- day MA and any further weakness can be seen only below this level.
   
• On the higher side, in the hourly chart minor resistance is around $1250 (55- EMA) and any break above will take the commodity till $1260 (200- HMA)/$1263 (38.2% retracement of $1296 and $1243) /$1269 (daily Kijun-Sen).

It is good to buy on dips around $1244-$1245 with SL around $1239 for the TP of $260/$1263.