FxWirePro: Gold breaks six year downtrend, good to buy on dips

• Gold has broken major resistance and hits the highest level since the election of Donald Trump on Nov 8th 2016. The yellow metal has made several attempts to break the downward trend line for the past six years and broken this time due to weaker dollar and geopolitical issue .
   
• Mounting geopolitical issues including upcoming elections and terrorist strikes in UK and escalating problem between Saudi Arabia and Qatar.
   
• Gold demand is expected to increase in India as Government fixes 3% GST rate for gold and 0.5% for rough diamonds.
   
• Gold has broken major resistance of $1295 high made before U.S election and jumped till $1296.05. The yellow metal is facing strong psychological resistance around $1300 and further bullish continuation can be seen above that level.
   
• Technically gold is facing minor support at $1273 (7- day MA) and any break below will drag the precious metal till $1262 (21-  EMA)/$1237 (89 EMA). It should break below $1195 (Mar 10th 2017 low) for further weakness.
   
• On the higher side, any close above $1295 (Apr 17th 2017) will take the commodity to next level till $1337/$1352.

It is good to buy on dips around $1278-$1280 with SL around $1256 for the TP of $1295/$1337.