FxWirePro: XAU/USD downside capped by 23.65 fibo, good to buy on dips

• 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 hits fresh 16 month low of 92.55 and slightly recovered from that level. U.S ADP employment data shows a 178K for July compared to forecast of 185K. But June increase was revised to 191K. Market awaits U.S NFP data for further direction .Minor jump can be seen in U.S Dollar index only if it breaks above 93.55 (10- day MA) and break above targets 94.10/95.
   
• 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 $1257 (23.6% retracement of $1204 and $1273.82) and break below will drag the commodity down till $1250 (21- day EMA)/$1243 (Jul 26th low).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 $1258 with SL around $1250 for the TP of $1275/$1295.