FxWirePro: Gold downside capped by 21- day EMA, good to buy on dips
The yellow metal gained almost $10 from the yesterday low of $1247. Gold declined sharply after making a high of $1271 on Apr 7th on increased expectations of Fed rate hike in June. But increasing political tensions in t…
The yellow metal gained almost $10 from the yesterday low of $1247. Gold declined sharply after making a high of $1271 on Apr 7th on increased expectations of Fed rate hike in June. But increasing political tensions in the Middle East and Korea has offset the U.S Fed rate hike expectations.
US Dollar index has shown a mild decline after making a high of 101.34 level. It is currently trading around 101.04.
On the higher side, major resistance is at $1275 (161.8% retracement of $1261 and $1239.388) and any break above targets $1280/$1306(161.8% retracement of $1263.87 and $1195.12).
The major near term support is around $1250 (10- day MA) and any break below will drag the yellow metal down till $1242 (38.2% retracement of $1195 and $1271.12)/$1233 (daily Kijun-Sen)/$1228.
It is good to buy on dips around $1246-$1248 with SL around $1240 for the TP of $1261/$1270
