FxWirePro: Gold trades higher on US trade war fear, good to buy on dips

• Gold has shown a massive recovery after hitting low of $1313.99 yesterday after US CPI data. The yellow metal hits high of $1329.90 at the time of writing. DXY has shown a 55 pips decline from the yesterday’s high of 90.11 and is trading at 89.60.
   
• US headline CPI came at 2.2% yoy in Feb up from 2.1% and core CPI came at 1.8% yoy in line with expectations. The removal of US Secretary of State Rex Tillerson also supported gold prices on safe haven demand.
   
• The yellow metal has taken support near trend line support at $1313 and shown a $15 jump. Any decline below $1309 will confirm minor decline and a dip till $1305/$1300 likely.  Any violation below $1299 will drag the gold till $1288 (200- day MA). The minor support is around $1323/$1317.
   
• The near term resistance is around $1330.50 (50- day MA) and any break above will take the yellow metal till ay $1341/$1348/$1355. Overall bullish continuation only above $1366.

It is good to buy on dips $1326-$1327 with SL around $1322.50 for the TP of $1336/$1340.