FxWirePro: XAU/USD recovered sharply after Trump’s “Fire and Fury” warning to North Korea, good to buy on dips

• Gold shown a huge recovery yesterday after hitting low of $1251 on account of increasing geopolitical tensions between U.S and North Korea. The yellow metal jumped almost $14 from the yesterday low. It is currently trading around $1259.62.
   
• North Korea said on Wednesday that it is considering plans for a missile strike on the US pacific territory of Guam. U.S President warned North Korea overnight not to make any threats to the U.S AND Japanese yen and Swiss franc surged after Trump’s warning.
   
• Markets await U.S inflation data to be released on Friday for further direction. U.S core CPI is expected to show a mild increase to 0.20% in the month of Jul from 0.1%. Any slight increase core CPI will take the Gold to higher levels.US. Dollar index broken high of 93.77 made on Aug 4th 2017 and jumped slightly till 93.88. Minor jump can be seen in U.S Dollar index only if it breaks above 94.03 (21- day EMA) and break above targets 95.
   
• Technically gold showing minor hurdle at $1274 high made on Aug 1st 2017 and any break above confirms bullish continuation.
   
• Gold’s near term support is around $1247 (89- day EMA) and break below will drag the commodity down till $1243 (Jul 26th low)/$1230 (200- day MA).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-$1260 with SL around $1247 for the TP of $1268/$1275.