FxWirePro: Gold trades higher on safe haven demand, good to buy on dips
Gold has recovered almost $19 from the low of $1228 on account of safe haven demand. The huge sell off in equity and crypto currency has increased demand for precious metal. The yellow metal hits high of $1347 and is cur…
Gold has recovered almost $19 from the low of $1228 on account of safe haven demand. The huge sell off in equity and crypto currency has increased demand for precious metal. The yellow metal hits high of $1347 and is currently trading around $1343.
US Dow lost almost 4.6% yesterday highest one day decline in history. The reason for decline is mainly increasing US bond yields hits 4- year high and made high of 2.86% and is currently trading around 2.79%.
The yellow metal has recovered after showing a minor dip below 20 –day MA. Any further weakness can be seen only if it closes below 20 –day MA at $1336 for two consecutive days. Any close below will drag the pair till $1320/$1311 (55- day EMA) is possible.
On the higher side near term resistance is around $1347 and break above targets $1357/$1366. Bullish continuation only above $1365. The minor resistance is around $1343/$1347.
It is good to buy on dips around $1335-37 with SL around $1330 for the TP of $1352/$1357.
