FxWirePro: Gold downside capped by 23.6% fibo, good to buy on dips

• Gold has shown a solid bounce back after showing minor profit booking. The yellow metal declined till $1297 and is currently trading around $1319.
   
• The yellow metal downside capped by 23.6% fibo and any further decline can be seen only below that level.
   
•  DXY shown a minor recovery till 93.35 slightly above 21- day EMA and started to decline from that level. Any break above 93.60 confirms minor bullishness a jump till 94.15 likely. Major trend reversal can be seen only above 94.15 level.
   
• U.S 10 year yield has shown a huge monthly drop in more than a year. The yield declined from 2.32% to 2.09%.
   
• Technically gold is facing major resistance around $1325 and any break above will take the yellow metal to new high at $1337 (Nov 9th 2016 high) /$1353 (161.8% retracement of $1295 and $1204.35)/$1377.50 Jul 2016 highs.
   
• Gold’s near term support is around $1296 (23.6% retracement of $1204 and $1325 and also resistance turned into support) and break below will drag the commodity down till $1275 (Aug 25th low) /$1269 (55- day EMA).The yellow metal should break below $1250 for minor trend reversal. 

It is good to buy gold on dips around $1304-$1306 with SL around $1297 for the TP of $1325/$1337.