- Gold continuing its 9th day of rally longest since 2011 and hits one month high. The main reason for jump is due to weakness of US dollar. US dollar index is trading weak for the past two days and closed below trend line support. It is currently trading around 92.61. The yellow metal jumped till $1296.50 and is currently trading around $1295.56.
- US workers has filed 245000 initial jobless claims for the week that ended Dec 23rd compared to forecast of 240000. The claims remained well below thresh hold of 300000 for the 147th straight week lon gest stretch since 1970.
- On the higher side, gold is facing strong resistance at $1296 (50% retracement) and any break above will take the yellow metal till $1300. Any close above $1300 will take the gold to next level till $1324 (78.6% fib)/$1357 (Sep 2017 high)/$1375.
- The near term major support is at $1286 (100- day MA) and any violation below will drag the metal to next level till $1280/$1274 (50- day MA)/$1267 (daily Kijun-Sen). Minor weakness below $1260. Any break below $1260 will drag the gold till $1243/$1236 (Dec 12th 2017 low).
It is good to buy on dips around $1285 with SL around $1274 for the TP of $1300/$1320.
