FxWirePro: Gold Daily Outlook

• Gold has once again declined after hitting high of $1244 on account of slight recovery in U.S dollar. The yellow metal formed a minor bottom around $1204 and any minor weakness can be seen only below that level. It is currently trading around $1238.80.
   
• Gold price jumped 3% from the low of $1204 after surprise dovish tone by Fed Jannet Yellen during testimony on Jul 12th and Jul 13th. The weak inflation data supported by more dovish tone from yellen is the main trigger for gold bullishness.
   
• Technically gold is trading well above major resistance $1230 (200- day MA) and a follow up buying is expected.
   
• US 10 year bond yield fallen by 4.6 basis point to 2.26%, its largest fall in Jun 14.
   
• Gold’s near term support is around $1224 (10- day MA) and break below will drag the commodity down till $1207 (50% retracement of $1296 and $1122)/$1195. The yellow metal should break below $1180 for major trend reversal.
   
• On the higher side, in the daily chart minor resistance is around $1243 (55- EMA) and any break above will take the commodity till $1250/$1258.

It is good to buy on dips around $1235-37 with SL around $1228 for the TP of $1250/$1258.