FxWirePro: Gold trades higher on Global Equity turmoil, good to buy on dips
Gold has been highly volatile for the past two trading session. The yellow metal formed a minor bottom at $1306.56. The commodity jumped till $1326.50 at the time of writing. It is current trading around $1323.52. The ye…
Gold has been highly volatile for the past two trading session. The yellow metal formed a minor bottom at $1306.56. The commodity jumped till $1326.50 at the time of writing. It is current trading around $1323.52.
The yellow metal recovery was mainly due to turmoil in equity market across the globe and that increases the safe haven demand. Investors shifting the investment to gold which is safe compared to equity.
On the lower side, any break below $1305 will drag the gold down till $1300/$1292. Bearish continuation only if it closes below $1292 level.
The near term resistance is around $1329 (daily Tenken-Sen) and any break above will take the commodity till $1335 (20- day MA)/$1338 (100- 4H MA).
It is good to buy on dips around $1314-15 with SL around $1305 for the TP of $1327/$1334.
