FxWirePro: Gold trades higher on safe haven demand, good to buy on dips

• Gold gained more than 1.5% yesterday on renewed geopolitical tensions on the Korean peninsula hit risk sentiment. The yellow metal jumped almost $18 from the yesterday low. It is currently trading around $1277.
   
• China consumer inflation missed expectations. China’s Jul CPI came at 0.1% compared to 0.2% and at 1.4% annual pace compared to expectations of 1.5%.
   
• Markets await U.S inflation data to be released on Friday for further direction. U.S core CPI is expected to show a mild increase to 0.20% in the month of Jul from 0.1%. Any slight increase core CPI will take the Gold to higher levels.US. Dollar index has slightly declined after hitting high of 93.88. Minor jump can be seen in U.S Dollar index only if it breaks above 94.03 (21- day EMA) and break above targets 95.
   
• U.S 10 year yield hits two week low yesterday at 2.21% and markets await major economic data for further movement.
   
• Technically gold has broken major resistance at $1274 high made on Aug 1st 2017 and jumped till $ 1279.45.
   
• Gold’s near term support is around $1265 (10- day MA) and break below will drag the commodity down till $1255 (558- day EMA)/$1243 (Jul 26th low)/$1230 (200- day MA).The yellow metal should break below $1195 for major trend reversal.
   
• On the higher side, near term resistance is around $1275 and any break above will take the commodity till $1295/$1337.

It is good to buy on dips around $1270-$1272 with SL around $1260 for the TP of $1280/$1296.