FxWirePro: Gold trades higher on Gary Cohn resignation, good to buy on dips
Gold has shown a good jump yesterday from the low of $1320.39. The yellow metal jump was supported by declining US dollar index after President Trump’s economic advisor Gary Cohn resigned. US dollar has declined sharply …
Gold has shown a good jump yesterday from the low of $1320.39. The yellow metal jump was supported by declining US dollar index after President Trump’s economic advisor Gary Cohn resigned. US dollar has declined sharply almost 60 pips till 8944 from the yesterday high of 90.06 and is trading at 89.42.
Gold price rose sharply almost $20 on increasing safe haven demand. Investors are expected to buy gold in order to hedge increasing risk from Trump’s controversial policy.
On the lower side, any break below $1328 (20- day MA) will drag the gold down till $1317 (61.8% fibo)/$1309/$1305. Bearish continuation only if it closes below $1299. Any violation below $1299 will drag the gold till $1287 (200- day MA).
The near term resistance is around $1341 and any break above will take the yellow metal till ay $1348/$1355. Overall bullish continuation only above $1366.
It is good to buy on dips around $1325-27 with SL around $1320 for the TP of $1341/$1345.
