FxWirePro: Gold trades weak on strong US dollar, good to sell on rallies

• Gold declined almost $9 in previous week. The yellow metal was trading flat and market eyes US fed monetary policy for further direction. The main reason for decline is stronger US dollar due to better than expected US economic data.  DXY has recovered almost 60 pips in previous week from low of 89.59 and it is trading at 90.32.
   
• US fed is expected to hike interest rates by 25bpbs and investors eyes the road map for further hikes.
   
• The yellow metal has broken major support at $1313 yesterday and declined till $1307.59. Any decline below $1307 will confirm minor decline and a dip till $1303 (100- day MA) likely.  Any violation below $1303 will drag the gold till $1289 (200- day MA).
   
• The near term resistance is around $1315 and any break above will take the yellow metal till $1321 (55- day MA)/$1325 (20- day MA). Short term bullish continuation only above $1330.

It is good to buy on dips $1317 with SL around $1313 for the TP of $1329/$1336.