- Gold declined almost $23 from the year high of $1357 made on Friday on account of easing tension in North Korea. The yellow metal hits low of $1334 at the time of writing and is currently trading around $1337.69.
- Hurricane Irma downgraded in intensity and a possible ICBM test by North Korea failed to materialize reduced demand for safe haven assets.
- Hurricane Irma is showing some signs of weakness and downgraded to a category 2 storm yesterday.
- DXY has shown a minor recovery after hitting low of 91.01 on Friday. Any break above 93.11 confirms minor bullishness a jump till 94.15 likely. Major trend reversal can be seen only above 94.15 level. The minor resistance is around 91.82/92.27.
- U.S 10 year yield has shown a minor recovery from 10 month low of 2.03% and is currently trading around 2.06%.
- Technically gold is facing major resistance around $1358 and any break above will take the yellow metal to new year high at $1377.50 Jul 2016 highs.
- Gold’s near term support is around $1332 (10- day MA) and break below will drag the commodity down till $1320 (23.6% retracement of $1204 and $1358)/$1315/$1300.The yellow metal should break below $1250 for minor trend reversal.
It is good to buy gold on dips around $1332-33 with SL around $1324 for the TP of $1358.
