• Major support - $1226 (21- day EMA)
   
• Major resistance - $1262 (200- day MA)
   
• The yellow metal hits three month high at $1251.17 yesterday on account of weakness in dollar. U.S dollar index declined slightly after Treasury secretary Mnuchin comments on long awaited tax overhaul.
   
• He had laid out an ambitious schedule on middle class people income tax cut and simplification of business which is expected to happen by Aug.
   
• U.S dollar index has broken minor psychological level of 101 and declined till 100.87. The index is facing strong support 100.55 (21- day MA) and any further bearish continuation only below that level. 
   
• Gold major resistance is around $1252 (127% retracement of $1244.80 and $1216.75) and any break above targets $1262 (200-day MA)/ $1278 (61.8% retracement of $1375 and $1122) is likely.
   
• On the lower side, minor support are around $1238 (7- day EMA) and any indicative break below targets  $1226 (21- day EMA)/$1215 (daily Kijun-Sen).
  
  It is good to buy on dips around $1245-$1247 with SL around $1238 for the TP of $1262/$1278.