FxWirePro: Gold Intraday Trade Idea

• Gold has declined almost 2% from the high of $1258 in previous week on account of US. dollar weakness and higher yield. It is currently trading around $1237.45.
   
• US dollar hits ten month low against Euro on hawkish ECB and central bank is expected to scale back stimulus by Sep or Oct. U.S dollar index hits the low of 95.47 and recovered slightly from that level. It is currently trading around 95.71.
   
• Gold’s near term support is around $1235 (200-MA) and break below will drag the commodity down till $1229 (38.2% retracement of $1126 and $1296)/1214. The yellow metal faces strong support at 200- MA and any further weakness can be seen only if closes below this level in the daily chart.
   
• On the higher side, in the daily chart minor resistance is around $1249 (100 day MA) and any break above will take the commodity till $1253 (55- day EMA)/$1263 (38.2% retracement of $1296 and $1243)/$1280.

It is good to sell on rallies around $1238-$1240 with SL around $1249 for the TP of $1229/$1215.