FxWirePro: Gold Long term Outlook

• Gold gained near to 0.5% yesterday on weaker than expected U.S CPI data and geo political tension between U.S and North Korea. The yellow metal jumped almost $7 from the yesterday low as risk aversion continues to dominate global financial markets. It is currently trading around $1286.94
   
• U.S core CPI came at 0.1% in Jul compared to forecast of 0.2% and 1.7% y-o-y slightly below US Fed inflation target of 2%.U.S dollar continued it’s selling Pressure after weaker than expected inflation data.
   
•  DXY has formed a minor top around 93.88 and declining from that level. Minor jump can be seen in U.S Dollar index only if it breaks above 93.95 (21- day EMA) and break above targets 95.
   
• U.S 10 year yield hits six weeks low at 2.19% lowest since Jun 28th 2017 on account of weak U.S economic data.
   
• Technically gold has jumped sharply till $1291.61 yesterday and shown a minor decline from that level. The near term major resistance is around $1296 high made on Jun 6th 2017 and any break above will take the yellow metal till $1300/$1310.
   
• Gold’s near term support is around $1271 (10- day MA) and break below will drag the commodity down till $1263(21- day EMA)/$1254 (55- day EMA).The yellow metal should break below $1195 for major trend reversal.
   

It is good to buy on dips around $1270 with SL around $1259 for the TP of $1296/$1300.