FxWirePro: Gold trades weak on strong US dollar, good to sell on rallies
Gold is trading in narrow range between $1301.60 and $1318 for past three trading session. The yellow metal weakness was mainly due to rise in global stock markets which points to lack of risk aversion in the world marke…
Gold is trading in narrow range between $1301.60 and $1318 for past three trading session. The yellow metal weakness was mainly due to rise in global stock markets which points to lack of risk aversion in the world marketplace. US dollar index is trading higher after breaking major resistance 93 (55- day EMA) and a confirm jump till 94 possible. Donald Trump announced yesterday that US will withdraw from 2015 nuclear deal and once again will re impose sanctions on Iran. It is currently trading around $1308.65.
The yellow metals near term resistance at $1316.60-$1318 (23.6% fibo and trend line support turned into resistance) and any break above will take the yellow metal till $1324 (100- day MA)/$1328 (50- day MA).
On the lower side, near term support is around $1305 (200- day MA) and any daily close below will drag the yellow metal down till $1294/$1285.
It is good to sell on rallies around $1310-11 with SL around $1317 for the TP of $1300/$1285.
