FxWirePro: Gold trades higher on weak U.S dollar, good to buy on dips

• Gold trading higher continuously for second consecutive week after hitting low of $1204. The yellow metal has broken major resistance at $1248 (100 –day MA) and is currently trading around $1253.98.
   
• Euro surged to two year high after ECB is preparing to withdraw stimulus down the road. Dollar is broadly lower after market is losing hope on trump.
   
• Technically gold has closed well above 100- day MA ($1248) on Friday and closed at $1254.98.
   
• Gold’s near term support is around $1237 (21- day EMA) and break below will drag the commodity down till $1230 (10- day MA)/$1224 (61.8% retracement of $1204.98 and $1257.23). The yellow metal should break below $1195 for major trend reversal.
   
• On the higher side, in the daily chart minor resistance is around $1262 (61.85 retracement of $1375 and $112) and any break above will take the commodity till $1274/$.

It is good to buy on dips around $1240-$1242 with SL around $1230 for the TP of $1258/$1277.