FxWirePro: Gold trades lower on strong dollar, good to buy on dips
Gold has declined sharply yesterday on account of strong dollar. The yellow metal dipped almost $14 after better than excepted US GDP data. It hits low of $1283 and is currently trading around $1284. The second estimate …
Gold has declined sharply yesterday on account of strong dollar. The yellow metal dipped almost $14 after better than excepted US GDP data. It hits low of $1283 and is currently trading around $1284.
The second estimate of third quarter GDP expanded at 3.3% seasonally inflation adjusted annual rate. It is the best level in 3 years. Fed Chair Jannet Yellen in the Congress testimony said upbeat comments on economy and boosted US dollar. The US 10 year bond yield jumped almost 60 bps yesterday for the first time since Nov 20th.
US Dollar index has declined slightly after showing a good jump above 93 after forming a temporary bottom around 92.50 level. The near term support is around 92.50 and any break below will drag the index to next level till 92.20/91.62. It is currently trading around 93.22. The pair is facing intraday resistance around 93.47 (10- day MA) and any break above will take the index to next level till 93.80/94.25/94.60/95.
Technically gold is facing near term resistance around $1300 and any break above will take the pair to next level till $1309/$1313/$1322.
Gold’s near term support is around $1283 (50- day MA) and break below will drag the commodity down till $1279/$1274.The yellow metal should close below $1262 (61.8% fibo) for major trend reversal.
It is good to buy on dips around $1280-82 with SL around $1274 for the TP of $1300/$1309.
