FxWirePro: Gold trades slightly higher on weak dollar, good to buy on dips
Gold is consolidating after hitting high of $1294.50 on Nov 22nd 2017. The yellow metal shown a minor jump after declining till $1274 on account of weak US dollar. US dollar was trading weak against all major previous we…
Gold is consolidating after hitting high of $1294.50 on Nov 22nd 2017. The yellow metal shown a minor jump after declining till $1274 on account of weak US dollar. US dollar was trading weak against all major previous week after dovish Fed minutes meeting. US dollar declined sharply on Friday and hits 5- week low against major currencies. It is currently trading around $1290.
US Dollar index has declined till 92.68 after breaking major support 93. The near term support is around 92.75 and any break below will drag the index to next level till 92.20/91.62. It is currently trading around 92.79. The pair is facing intraday resistance around 93.64 (50- day MA) and any break above will take the index to next level till 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 $1283-$1285 with SL around $1274 for the TP of $1300/$1309..
