FxWirePro: Gold trades higher on weak US dollar, good to buy on dips

• Gold is consolidating after hitting high of $1327 yesterday. The yellow metal jump was supported by increasing safe haven demand due to imposition of tariffs by Donald Trump. US dollar has declined sharply almost more than 100 pips till 89.83 from the high of 90.93 and is trading at 90.02.
   
• Gold price rose sharply on Friday in response to the heightened threat of trade war. Investors are expected to buy gold in order to hedge increasing risk from Trump’s controversial policy.
   
• On the lower side, any break below $1299 (100- day MA) will drag the gold down till $1287 (200- day MA). Bearish continuation only if it closes below $1287. Any violation below $1287 will drag the gold till $1282 (233- day MA)/$1275.
   
• The yellow metal broken major resistance at $1329 (20- day MA) and any break above will take the yellow metal till ay $1336/$1341. Overall bullish continuation only above $1366.

It is good to buy on dips around $1320 with SL around $1314 for the TP of $1330/$1336.