FxWirePro: Gold faces resistance around 200- day MA, good to buy on dips
Gold prices continuing its uptrend for fourth consecutive days on the back of poor economic data. The yellow metal jumps till $1244.79 and it is currently trading around $1243. U.S new home construction has fallen in Apr…
Gold prices continuing its uptrend for fourth consecutive days on the back of poor economic data. The yellow metal jumps till $1244.79 and it is currently trading around $1243.
U.S new home construction has fallen in Apr for the third time in four months. U.S housing starts came at 1.172M compared to forecast of 1.26M. US dollar index trading weak and broken major support 98.50 and declined till 97.91 at the time of writing.
U.S 10 year bond yield declines sharply after hitting 6 – week high at 2.41% and is currently trading around 2.33% on account of weak U.S economic data.
In the daily chart the yellow metal broken 100- EMA and is facing resistance at 200- day MA.
Technically gold is facing strong support at $1214 (May 9th 2017 low) and any break below will drag the precious metal till $1208 (50% retracement of $1122 and $1295)/$1200/$1195. It should break below $1195 (Mar 10th 2017 low) for further weakness.
On the higher side, near term resistance is around $1245 (200- day MA) and any break above targets $1255 (50% fibo)/$1260.
It is good to buy on dips around $1230 with SL around $1220 for the TP of $1245/$1255.
