- Gold is consolidating in narrow range after hitting high of $1344. The yellow metal is trading in narrow range between $1344 and $1324. US dollar index has been trading flat as US shutdown ends as congress strikes deal. The yellow metal recovered till $1337.86 and is currently trading around $1336.
- The Republicans and Democrats agreed on short term funding bill ends on Feb 8th 2018. This will hagve very little impact on US dollar index. But major reaction is possible only after ECB governing council meeting for further jump of Euro above 1.23 level. U.S 10 –year bond yield broken major resistance 2.62% and jumped till 2.65%. The strength in US bond yields will support price of USD but this time it is decoupling with each other.
- The near term support is at $1328 (233- H MA) and any violation below will drag the metal to next level till $1320 (61.8% fibo)/$1313/$1308 (Jan 10th low). Minor weakness below $1300. Any break below $1300 will drag the gold till $1287.
- On the higher side near term resistance is around $1352 (trend line joining $1433 and $1375) and break above targets $1357/$1375
It is good to buy on dips around $1330-32 with SL around $1324 for the TP of $1340/$1344.
