FxWirePro: Gold trades higher on weak US dollar, good to buy on dips
Gold has shown a minor jump after hitting low of $1330. The yellow metal jumped almost $12 from the yesterday low. US dollar index has been trading weak and has broken major support of 90. It is currently trading around …
Gold has shown a minor jump after hitting low of $1330. The yellow metal jumped almost $12 from the yesterday low. US dollar index has been trading weak and has broken major support of 90. It is currently trading around 89.88.
Euro was trading higher against dollar and has broken 1.230 level after better than expected positive Euro zone data. German ZEW survey came in better than expected and EU consumer confidence came at jumped to 1.3 in Jan from 0.5, highest level since 2000. ECB monetary policy which is to be happen tomorrow will be major event for further direction.
The near term support is at $1330 (200- H EMA) 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 $1344 and break above targets $1357/$1375.
It is good to buy on dips around $1335 with SL around $1330 for the TP of $1344/$1352.
