FxWirePro: Gold downside capped by 200 –day MA, good to buy on dips

• Gold prices shown minor profit booking after hitting two week high on account political uncertainty in U.S. The yellow metal declined almost $20 till $1245.95 yesterday and it is currently trading around $1249.86.
   
• US Dollar index hits lowest level since Nov 2016 on Trump turmoil and shown a minor recovery. 
   
• U.S 10 year bond yield shown a minor recovery after declining 11.4 basis point yesterday largest one day decline since Jun 27 2016 amid trump controversy. It has closed around 2.23%.
   
• In the daily chart the yellow metal has taken support near 200- day MA and jumped slightly from that level.
   
• Technically gold is facing strong support at $1245 (200- day MA) and any break below will drag the precious metal till $1239 (89 – EMA). It should break below $1195 (Mar 10th 2017 low) for further weakness.
   
• On the higher side, near term resistance is around $1265 (61.8% retracement of $1295 and 1214) and any break above targets $1278 (61.8% retracement of $1375 and $1122)/$1295.

It is good to buy on dips around $1248-$1250 with SL around $1239 for the TP of $1265/$1278.