FxWirePro: Gold recovers more than $20 on escalating trade war,good to buy on dips
Gold has halted its weakness and has shown more than $20 jump from yesterday low of $1237.50 on escalating US-China trade war. The increase in geo political tensions has raised demand for safe haven assets such as gold. …
Gold has halted its weakness and has shown more than $20 jump from yesterday low of $1237.50 on escalating US-China trade war. The increase in geo political tensions has raised demand for safe haven assets such as gold. Overall it has lost more than $70 dollar from the high of $1309.20 made on Jun 14th 2018 on account of surging US dollar against all majors. US dollar has showed a minor decline once gain after showing a minor jump till 95 level. The index should break above95.53 for further bullishness.The policy divergence between ECB and Fed is supporting prices of US dollar index. But yellow metal has lost its shine as safe haven demand. The rising US yield and interest rate hike by fed is dragging gold prices down.
The pair is facing strong trend support at $1239 (trend line joining $1046 and $1122) and any break below will take the yellow metal till $1234 (200- W MA) and any weekly close confirms further weakness.
The near term resistance is around $1260 and any break above will take the yellow metal till $1270/$1275 (23.6% fib).
It is good to buy on dips around $1252-54 with SL around $1245 for the TP of $1270/$1275.
