FxWirePro: Gold recovers on geopolitical concerns, good to sell on rallies

Gold has shown a good pullback yesterday on geopolitical risks and rising crude oil prices. The yellow metal jumped almost $16 on concerns over Saudi Crown Prince crackdown on corruption and arrest of number of princes and ministers. It is currently trading around $1279.
WTI crude oil prices hit almost two year high and is currently trading around $57.29. The tensions in Saudi and decline in US rigs count is boosting the price of oil.
US Dollar index is consolidating in narrow range between 94.40 and 95.15 for the past ten days. The index is facing strong resistance at 95.20 (161.8% fibo) and any break above targets 96/96.51 level. It is currently trading around 94.78. The pair is facing major support near 94.40 (10- day MA) and any break below confirms minor weakness till 93.90 (100- day MA)/93.58 (55- day EMA)/92.60 likely.
CFTC shows that speculator have cut their net long position for a 7th straight week over Oct 17-24.
Technically gold is facing near term resistance around $1285 (55- day EMA) and any break above will take the pair to next level till $1290 (61.8% Fibo)/$1298. Overall bullish continuation can be seen if it closes above $1298 (50- day MA).
Gold’s near term support is around $1262 (61.8% retracement of $1204 and $1357.90) and break below will drag the commodity down till $1250.The yellow metal should close below $1250 for major trend reversal.

It is good to sell on rallies around $1278-$1280 with SL around $1286 for the TP of $1262/$1250.

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