FxWirePro: Gold trades strong on Middle East tension,good to buy on dips

Gold is trading higher for 3rd consecutive day and jumped more than $12 on ongoing Middle East tension. Two tankers got exploded near Strait of Hormuz and US Secretary of State Mike Pompeo said that “Iran is responsible for the attack”. The Strait of Hormuz is strait between Persian Gulf and Gulf of Oman.Almost one third of all seaborne oil transits pass through Strait of Hormuz nearly 22.5 million barrels per day. The yellow metal hits high of 1353 and is currently trading around $1352.87.

US Dollar Index -Trend weak. US Dollar index hits high of 97.02 around 40 pips from low of 96.59.The index has taken support near 200 day MA and jump till 97.40 possible..Any violation above 97.40 targets 98. It is currently trading around 97.04.

US 10 year yield- Overall trend negative. It has lost more than 4.5% from minor top 2.17%.The yield hits 2.05% on Jun 7th lowest since Sep 2017. It is currently trading around 2.08%.

S&P500: Intraday trend - neutral.It has recovered more than 1% from low of 2866.The near term resistance is around 2911 and any violation above targets 2929/2950.It is currently trading around 2891.

On the higher side, near term resistance is around $1350 and any convincing break above targets $1365-66. Major trend reversal only above $1366. 

The near term support is around $1346 (23.6% fib) and any break below confirms minor weakness a dip till $1340/$1334. Any major weakness only below $1320.

It is good to buy on dips around $1346-47 with SL around $1340 for the TP of $1365.