FxWirePro: Gold trades higher on weak U.S dollar, jump till $1306 likely
Gold prices added to recent gains and broken high of $1275 made on Apr 11th 2017 on account of geopolitical tension in Syria and North Korea. The yellow metal gained further yesterday after U.S President Donald Trump com…
Gold prices added to recent gains and broken high of $1275 made on Apr 11th 2017 on account of geopolitical tension in Syria and North Korea.
The yellow metal gained further yesterday after U.S President Donald Trump comment on U.S dollar and interest rate in an interview. Donald Trump said that U.S dollar is too strong and it will ultimately affect the economy. U.S dollar index broken 21- day EMA and declined till 100.01. Any break below 100 will drag the index down till 99.60/99.25. Minor weakness can be seen only below 100 level.
On the higher side, any break above $1279 (61.8% retracement of $1375 and $1122) will take the yellow metal till $1306 (161.8% retracement of $1263.87 and $1195.12)/$1332.
The major near term support is around $1264 (5- day MA) and any break below will drag the yellow metal down till $1257 (200- day MA)/ $1248 (23.6% retracement of $1122 and $1285)/$1234 (daily Kijun-Sen)/$1228.
It is good to buy on dips around $12 with SL around $1255 for the TP of $1300/$1306.
