- Gold gained near to 1% yesterday on more of war of words between North Korea and Washington increases geopolitical tensions in the region. The yellow metal jumped almost $10 from the yesterday low as risk aversion continues to dominate global financial markets. It is currently trading around $1286.
- U.S Jobless claims rise by 3000 in the first week of Aug to 244000. U.S PPI data slipped 0.1% last month largest since Aug 2016.Markets await U.S CPI 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 decline core CPI will defer the US Fed rate hike.
- DXY has formed a minor top around 93.88 and declining from that level. Minor jump can be seen in U.S Dollar index only if it breaks above 93.95 (21- day EMA) and break above targets 95.
- U.S 10 year yield sat lower at 2.21% lowest since Jun 28th 2017 on account of US –North Korea geopolitical tension and weak U.S data.
- Technically gold has jumped sharply till $1288 after breaking high of $1274. The near term major resistance is around $1296 high made on Jun 6th 2017 and any break above will take the yellow metal till $1300/$1310.
- 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.


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