FxWirePro: Gold recovers slightly on weak dollar, good to buy on dips
Gold jumped almost more than $10 from yesterday low of $1342 on account of easing tensions in Middle East and Korea. But retail sales of gold has been slightly declined due to various factors on Akshya trithya. The easin…
Gold jumped almost more than $10 from yesterday low of $1342 on account of easing tensions in Middle East and Korea. But retail sales of gold has been slightly declined due to various factors on Akshya trithya. The easing geo political tensions has reduced demand for safe haven assets like gold, yen and Swiss franc. But slightly weak dollar is supporting yellow metal. It is currently trading around $1353.11.
US dollar index is trading in narrow range between 89.96 and 89.23 for the past five trading session. It should break above 90 for further minor bullishness. It is currently trading around 89.66.
The yellow metals near term resistance at $1355 and any break above will take the yellow metal till $1355/$1365. The major bullishness only above $1365. Any break above $1365 will take the gold till $1374/$1380.
On the lower side, near term support is around $1345 (7- day MA) and any break below will drag the yellow metal down till $1338/$1329 (61.8% fibo)/$1324.
It is good to buy on dips around $1347 with SL around $1339 for the TP of $1364.
