FxWirePro: Gold trades higher on weak US dollar, good to buy on dips
Gold has recovered sharply after hitting low of $1236 (6- week low) on account of weak dollar. The yellow metal shown a minor recovery till $1255 and is currently trading around $1252.12. US dollar hits ten month low aga…
Gold has recovered sharply after hitting low of $1236 (6- week low) on account of weak dollar. The yellow metal shown a minor recovery till $1255 and is currently trading around $1252.12.
US dollar hits ten month low against Euro as central banks in Europe are preparing to scale back monetary stimulus. U.S dollar index broken the low of 95.90 low made on Nob 9th 2016 and declined till 95.75.
Gold’s near term support is around $1237 (200-MA) and break below will drag the commodity down till $1229 (38.2% retracement of $1126 and $1296). The yellow metal has taken support near 100- day MA and any further weakness can be seen only below this level.
On the higher side, in the daily chart minor resistance is around $1255 (21 EMA) and any break above will take the commodity till $1266 (100- 4H MA)/$1263 (38.2% retracement of $1296 and $1243) /$1269 (daily Kijun-Sen).
It is good to buy on dips $1246-$1248 with SL around $1237 for the TP of $1263/$1266.
