FxWirePro: Gold holds at higher level on political uncertainty, good to buy on dips
Gold prices shown minor jump after hitting the low of $1246 on Friday. The yellow metal climbed sharply after allegations that Trump asked FBI director James Comey to end his investigation of former National security adv…
Gold prices shown minor jump after hitting the low of $1246 on Friday. The yellow metal climbed sharply after allegations that Trump asked FBI director James Comey to end his investigation of former National security adviser. The precious metal jumped till $1264 and is currently trading around $1253.25.
US Dollar index slightly recovered from the six month low of 97.10 level. The index has closed slightly below 89- W EMA and this confirms minor weakness, a decline till 95.90 likely.
In the daily chart the yellow metal has taken support near 200- day MA and jumped slightly from that level.
Technically gold is facing strong support at $1245 (200- day MA) and any break below will drag the precious metal till $1239 (89 – EMA). It should break below $1195 (Mar 10th 2017 low) for further weakness.
On the higher side, near term resistance is around $1265 (61.8% retracement of $1295 and 1214) and any break above targets $1278 (61.8% retracement of $1375 and $1122)/$1295.
It is good to buy on dips around $1248-$1250 with SL around $1239 for the TP of $1265/$1278.
