• Gold is consolidating after a jump of more than $20 from its low of $1237.82.The yellow metal’s massive recovery was mainly due to escalating trade war between US and China. 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 of more than 50 pips after showing a minor jump till 94.98 level. The index should break above 95.53 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. Markets eyes US major data such as US ADP ,ISM non manufacturing PMI (today) and US Non-farm payroll data for further direction.
   
• 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.