FxWirePro: Gold trades higher on weak U.S data, good to buy on dips
Gold recovered almost $30 from the low of $1204 made on Jul 10th 2017. The yellow metal jumped till $1233.0 and is currently trading around $1230. U.S data came slightly weaker than expected on Friday. U.S core retail sa…
Gold recovered almost $30 from the low of $1204 made on Jul 10th 2017. The yellow metal jumped till $1233.0 and is currently trading around $1230.
U.S data came slightly weaker than expected on Friday. U.S core retail sales came at -0.2% compared to forecast of 0.2%. U.S core CPI inflation data came at 0.1% m/m compared to forecast of 0.2%. Weak economic has dimmed the chance of more rate hike by US Fed.
Gold’s near term support is around $1220 (10- day MA) and break below will drag the commodity down till $1207 (50% retracement of $1296 and $1122)/$1195. The yellow metal should break below $1180 for major trend reversal.
On the higher side, in the daily chart minor resistance is around $1233 (21- EMA) and any break above will take the commodity till $1243 (55- EMA)/$1250.
It is good to buy on dips around $1220 with SL around $1207 for the TP of $1233/$1243/$1250.
