FxWirePro: Gold hits 2- week high, good to buy on dips
Gold prices has shown good pull back and hits two – week high as tensions over North Korea rise. The yellow metal jumps till $1237 an d shown a mild decline. It is currently trading around $1230. The successful missile t…
Gold prices has shown good pull back and hits two – week high as tensions over North Korea rise. The yellow metal jumps till $1237 an d shown a mild decline. It is currently trading around $1230.
The successful missile test by North Korea and cyber-attacks around the world is supporting the gold prices. U.S dollar index trading weak and closed well below 200- day MA. Any break below 98.50 will confirm that jump from 91.92 will come to an end.
U.S 10 year bond yield declines after hitting 6 – week high at 2.41% and is currently trading around 2.34% on account of weak U.S economic data.
In the daily chart the yellow metal broken 10- day MA and is facing resistance at 100- EMA.
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 $1238 (100-EMA) and any break above targets $1245 (38.2% retracement of $1295 and $1214)/ $1255 (50% fibo).
It is good to buy on dips around $1230 with SL around $1220 for the TP of $1245/$1255.
