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 Dol…
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.
