FxWirePro: Gold trades weak on strong US dollar, good to sell on rallies
Gold has shown a good selling of almost $23 from the high of $1346.73 made yesterday. The major reason for decline in yellow metal was due to minor dip in safe haven demand as US – China trade war started to ease and str…
Gold has shown a good selling of almost $23 from the high of $1346.73 made yesterday. The major reason for decline in yellow metal was due to minor dip in safe haven demand as US – China trade war started to ease and strong US dollar. The yellow metal hits low of $1323.42 and is currently trading around $1323.33.
US dollar index shown a minor recovery after hitting low 88.94. The index jumped till 90.15 and is trading around 89.97.
The yellow metal is facing major near term resistance at $1331.50 (50- day MA) and any minor bullishness only above that level. Any break above $1331.5 will $1336/$1341/$1347. Overall bullish continuation only above $1362.
On the lower side, near term support is around $1323 (55- day EMA) and any break below will drag the yellow metal down till $1317/$1313/$1307.
It is good to sell on rallies around $1330-31 with SL around $1338 for the TP of $1317/$1313.
