FxWirePro:Gold downside capped by 21- day EMA, good to buy on dips
Gold recovered almost 1.5% yesterday on weaker U.S dollar and Fed minutes meeting. The yellow metal jumped almost $20 from the yesterday low and is currently trading around $1287.97. DXY has formed a minor top around 4.1…
Gold recovered almost 1.5% yesterday on weaker U.S dollar and Fed minutes meeting. The yellow metal jumped almost $20 from the yesterday low and is currently trading around $1287.97.
DXY has formed a minor top around 4.158 and declining from that level. Minor jump can be seen in U.S Dollar index only if it breaks above 94.29 (23.6% fibo) and break above targets 95.
U.S 10 year yield recovered after hitting six weeks low at 2.19% lowest since Jun 28th 2017 at 2.23%.
Technically gold has jumped sharply after hitting low of $1267.80 yesterday. The near term major resistance is around $1296 high made on Jun 6th 2017 and any break above will take the yellow metal till $1300/$1310.
Gold’s near term support is around $1267 (21- day EMA) and break below will drag the commodity down till $1255 (55- day EMA)/$1249 (61.8% retracement of $1204.70 and $1291.61).The yellow metal should break below $1195 for major trend reversal.
It is good to buy on dips around $1270 with SL around $1259 for the TP of $1296/$1300.
