FxWirePro: Gold pushes higher on flattening of U.S yield curve, good to buy on dips

• Gold edged up slightly up for second consecutive days from the 5- week low of $1240 as another rate hike by Fed this year slightly faded. The yellow metal jumped till $1255 yesterday and is currently trading around $1252.90.
   
• Fed officials has given hawkish message on rate hike but market players are doubtful over the central bank’s ability to raise rates on account of disappointing economic data and weak inflation.
   
• The yield curve between five –year note and 30-year note flattened to 95.2 basis point , narrowest since Dec 2007.
   
• Gold’s near term support is around $1239 (100-MA) and break below will drag the commodity down till $1229 (38.2% retracement of $1126 and $1296). The yellow metal has taken support near 100- day MA and any further weakness can be seen only below this level.
   
• On the higher side, in the 4 hour chart minor resistance is around $1255 (200- 4H MA) and any break above will take the commodity till $1266 (100- 4H MA)/$1263 (38.2% retracement of $1296 and $1243) /$1269 (daily Kijun-Sen).

It is good to buy on dips around $1250-$1252 with SL around $1245 for the TP of $1260/$1266. 

FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest