FxWirePro: Gold trades higher on weak US. Dollar, good to buy on dips
Gold has shown a minor jump yesterday on account of weak US dollar. US house passed Republican’s tax yesterday 227 to 203 but it has to be passed once again as Senate rules has been violated. The dollar has not shown any…
Gold has shown a minor jump yesterday on account of weak US dollar. US house passed Republican’s tax yesterday 227 to 203 but it has to be passed once again as Senate rules has been violated. The dollar has not shown any positive reaction to tax bill. The yellow metal jumped till $1264.89 and is currently trading around $1263.
Euro has recovered sharply after a 7 pt jump in 10 –year German Bund yield from 0.3% to 0.37% yesterday.
On the higher side, near term resistance is around $1268 (200- day EMA) and any break above will take the yellow metal to next level till $1273 (55-day EMA)/$1279.50.
The near term major support is at $1258 (23.6% fibo) and any violation below will drag the metal to next level till $1250/$1243/$1236 (88.6% retracement of $1204.70 and $1357). Overall bullish invalidation only below $1200. The minor support is around $1250/$1243.
It is good to buy on dips around $1260 with SL around $1254 for the TP of $1275/$1280.
