FxWirePro: Gold trades lower on weak US dollar, good to sell on rallies
Gold has declined almost $14 yesterday after a good recovery till $1344.75 on Monday. The major reason for decline is due to slight bullishness in US dollar index. But downside is limited as trade war worries increased d…
Gold has declined almost $14 yesterday after a good recovery till $1344.75 on Monday. The major reason for decline is due to slight bullishness in US dollar index. But downside is limited as trade war worries increased demand for safe haven assets like gold, yen etc. The yellow metal hits low of $1328.75 and is currently trading around $1343.
US dollar index has shown a minor decline after hitting high of 90.28 yesterday. The index should close above 90.24 (55- day EMA) for jump till 90.93.
The yellow metal is facing major resistance at $1347 and any minor bullishness only above that level. Any break above $1347 will take the gold till $1355/$1361 Overall bullish continuation only above $1362. The minor resistance is at $1337.50/$1341.
On the lower side, near term support is around $1327 (20- day MA) and any break below will drag the yellow metal down till $1323/$1320/$1314.
It is good to sell on rallies around $1345-47 with SL around $1352 for the TP of $1324/$1321.
