FxWirePro: XAU/USD Daily Outlook

• Gold hits one and half month high at $1273 and shown a minor profit booking from that level. The yellow metal downside is limited on account dollar weakness.
   
• US Dollar index fell recovered slightly after hitting 16 month low. The dollar trend is still bearish as investors are betting against Trumponomics. Minor intraday jump can be seen in U.S Dollar index only if it breaks above 93.51 (7- day MA) and break above targets 93.74/94.01.
   
• Technically gold shown a minor jump above trend line at $1268 but not able to close well that level. Any weekly close above that level confirms further bullish continuation.
   
• Gold’s near term support is around $1264 (4 Hour Kijun-Sen) and break below will drag the commodity down till $1257 (55- 4H EMA)/$1247 (38.2% fibo).The yellow metal should break below $1195 for major trend reversal.
   
• On the higher side, near term resistance is around $1275 and any break above will take the commodity till $1295/$1337.

It is good to buy on dips around $1250-$1252 with SL around $1240 for the TP of $1295/$1337.