- Gold has declined almost $10 from the high of $1340.35 yesterday on slight jump in US dollar after dovish statement by ECB yesterday. The yellow metal decline will be protected due to uncertainty in global market on account of US trade war. This might increase safe haven demand and that will support gold price. US dollar rose sharply almost 60 pips till 90.31 from temporary low of 89.41 and is trading at 90.15.
- ECB said that bond buying program will continue till Sep and longer if needed. it has not given any specific end date. The dovish stance by ECB has dragged Euro down till 153 pips.
- The yellow metal has broken major support $1320 (55- day EMA) and declined till $1316.70. This confirms minor weakness, a dip till $1305/$1300 likely Any violation below $1299 will drag the gold till $1288 (200- day MA).
- The near term resistance is around $1330 (50- day MA) and any break above will take the yellow metal till ay $1341/$1348/$1355. Overall bullish continuation only above $1366.
It is good to sell on rallies around $1320-21 with SL around $1327 for the TP of $1309/$1305. .
