FxWirePro: Gold trades slightly weak on increasing risk appetite, good to buy on dips
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…
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.
