FxWirePro: Gold hits fresh year high on renewed North Korea tension, good to buy on dips

• Gold has shown a solid jump above $1325 on renewed North Korea tensions. The yellow metal jumped till $1336.64 and is currently trading around $1335.
   
• North Korea on Sunday has tested a hydrogen bomb which 10 times more powerful than previous detonations.
   
•  DXY shown a minor recovery after hitting low of 92.10 level on Friday. 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 minor recovery form the low of 2.09% 10 month low. The yield is currently trading around 2.16%.
   
• Technically gold is facing major resistance around $1337 (Nov 9th 2016 high)           and any break above will take the yellow metal to new year high at 1353 (161.8% retracement of $1295 and $1204.35)/$1377.50 Jul 2016 highs.
   
• Gold’s near term support is around $1306 (10- day MA) and break below will drag the commodity down till $1296/ $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 $1323-25 with SL around $1316 for the TP of $1340/$1350.