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

• Gold prices has recovered almost $10 from the low of $1248 made yesterday after Fed minutes meeting and is currently trading around $1259.
   
• US Dollar index declined sharply after Fed minutes meeting. The minutes from the Federal Open Market committee showed it is comfortable to continue on its path of gradual increase in the federal funds rate. Market got slightly surprised as Fed outlined balance sheet normalization plan.
   
• In the daily chart the yellow metal has formed golden cross over 50-day moving average rose above its 200-day moving average and this confirms bullish signal. Any minor weakness can be seen if it closes below 200 – day MA.
   
• Technically gold is facing strong support at $1245 (200- day MA) and any break below will drag the precious metal till $1240 (89 – EMA)/$1233 (61.8% retracement of $1195 and $1264.93). 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 $1250 with SL around $1243 for the TP of $1265/$1278.