FxWirePro: Gold downside capped by 20 –day MA, good to buy on dips

• Gold continuing its winning streak for the fourth consecutive days and jumped almost $9 from yesterday low of $1284.50. The yellow metal is trading high as geopolitical tensions in North Korea and Spain has increased demand for safe haven. The yellow metal jumped almost $34 from the low of $1260 made on Friday. It is currently trading around $1294.57.
   
• Fed minutes meeting confirms rate hike in Dec but majority of Fed officials worried that core inflation might not rebound quickly.
   
• US Dollar index has shown a minor weakness after breaking minor support at 93 level. It is currently trading around 92.83. The pair is facing major support near 92.60 and any break below confirms minor weakness till 91.95/91.62. The near term resistance is at 93.40 (55- day EMA) and any break above will take the index to next level till 94.30/95.
   
• U.S 10 year yield has shown a minor change after Fed minutes and treasury department saw solid demand for three year and 10- year note supply.
   
• Technically gold is facing major resistance around $1298 (50- day MA) and any break above will take the yellow metal till $1302/$1309 (50% retracement of $1357 and $1260)
   
• Gold’s near term support is around $1262 (61.8% retracement of $1204 and $1357.90) and break below will drag the commodity down till $1250 (200- day MA).The yellow metal should close below $1250 for major trend reversal. The near term support is around $1284 (20- day MA)/$1276 (10- day MA).

It is good to buy on dips around $1284-$1286 with SL around $1276 for the TP of $1298/$1309.