FxWirePro: Gold trades higher on U.S political uncertainty, good to buy on dips
Gold prices continuing its uptrend for fifth consecutive days and jumped almost $25 yesterday on account political uncertainty in U.S. The yellow metal jumps till $1263 at the time of writing and it is currently trading …
Gold prices continuing its uptrend for fifth consecutive days and jumped almost $25 yesterday on account political uncertainty in U.S. The yellow metal jumps till $1263 at the time of writing and it is currently trading around $1259.
Dollar declined sharply against all major pairs after New York Times reports that Donald Trump tries to interfere with federal investigation.
U.S 10 year bond yield has fallen by 11.4 basis point largest one day decline since Jun 27 2016 amid trump controversy. It has closed around 2.2%.
In the daily chart the yellow metal broken 200- day MA and jumped well above that level.
Technically gold is facing strong support at $1251 (23.6% retracement of $1214 and $1263) and any break below will drag the precious metal till $1246 (200 – day MA)/$1239 (89 – EMA). It should break below $1195 (Mar 10th 2017 low) for further weakness.
On the higher side, near term resistance is around $1265 (61.8% retracement of $1295 and 1214) and any break above targets $1278 (61.8% retracement of $1375 and $1122)/$1295.
It is good to buy on dips around $1248-$1250 with SL around $1239 for the TP of $1265/$1278.
