- Gold is trading flat after a strong recovery on Friday. The yellow metal has shown a minor dip after US- China trade tension eases. Chines President Xi announces plan to open up Chinese economy by lowering import tariffs for autos and other important products. Gold declined almost $8 from a high of $1338 made yesterday. Market eyes US PPI data which is to be released today for further direction.
- US dollar index recovery during Asian session was short lived. The index declined after hitting high of 89.97.DXY should break above 90.60 for further upside.
- The yellow metal is facing major intraday resistance at $1338 and any minor bullishness only above that level. Any break above $1338 will take the gold till $1341/$1347. Overall bullish continuation only above $1362.
- On the lower side, near term support is around $1328 (20- day MA) and any break below will drag the yellow metal down till $1319/$1309.
It is good to buy on dips around $1331-32 with SL around $1327 for the TP of $1341/$1346.
