FxWirePro: Gold bounces from the low on geopolitical tension, good to buy on dips
Gold has bounced back from the low of $1218 made on Jul 3rd 2017 on account of renewed North Korea tension. The yellow metal shown a minor jump till $1228.95 at the time of writing and is currently trading around $1226. …
Gold has bounced back from the low of $1218 made on Jul 3rd 2017 on account of renewed North Korea tension. The yellow metal shown a minor jump till $1228.95 at the time of writing and is currently trading around $1226.
Safe haven buying came in the gold market after the latest missile test by North Korea. It has developed an intercontinental ballistic missile (ICBM) which can carry nuclear weapon. Market also awaits for FOMC minutes meeting for further direction.
Gold’s near term support is around $1217 (May 9th 2017 low) and break below will drag the commodity down till $1214/$1200/$1195. The yellow metal should break below $1180 for major trend reversal.
On the higher side, in the daily chart minor resistance is around $1235 (200 day MA) and any break above will take the commodity till $1248 (89- day EMA)/$1258.
It is good to buy on dips around $1223-25 with SL around $1215 for the TP of $1235/$1248.
