- Gold has shown a slight profit booking after hitting an 11-month high as dollar pared some of its losses on better than expected US economic data. But downside is limited due to political uncertainty. The yellow metal declined till $1297 and is currently trading around $1303.
- The yellow metal declined almost 2% from high after better than expected US ADP employment and US economic growth for the second quarter was revised higher than expected.
- DXY shown a minor recovery till 93.04 after hitting low of 91.62 level. Any break above 93.60 confirms minor bullishness a jump till 94.15 likely. Major trend reversal can be seen only above 94.15 level.
- U.S 10 year yield has fallen to post election low of 2.09 and shown a minor jump from level til 2.15.
- Silver gold ratio is at 3 year low at 0.013 and is expected to go up in the coming days. So Silver is expected to outperform gold in the coming days.
- Silver has closed well above 200- day MA at $17.02 and is trading well below year high of $18.63. So a jump till $18.63 in the short term is possible.
- Technically gold is facing major resistance around $1325 and any break above will take the yellow metal to new high at $1337 (Nov 9th 2016 high) /$1353 (161.8% retracement of $1295 and $1204.35)/$1377.50 Jul 2016 highs.
- Gold’s near term support is around $1296 (23.6% retracement of $1204 and $1325 and also resistance turned into support) and break below will drag the commodity down till $1275 (Aug 25th low) /$1269 (55- day EMA).The yellow metal should break below $1250 for minor trend reversal.
It is good to buy Silver on dips compared to gold at $17.20 with SL around $16.70 for the TP of $18.60/$19.
