Gold - Sell on rallies (US session)
Gold showed a minor pull back after US inflation data. It hits a high of $2524 after data and is currently trading around $2519.
US core PCE came in at 2.6% y/y below the forecast of 2.7%. PCE core - 0.20% m/m vs 0.20% expected.
The yellow metal is trading above 34 and 55 H EMA in the hourly chart ($2516 and $2517.80). The weakness can be seen only if it closes below $2500. A break below targets $2490/$2470 is possible.
US dollar index- It has gained more than 20 pips despite weak US PCE. Any close above 101.60 confirms minor bullishness.
The yellow metal faces minor resistance around $2525 and a breach above will take it to the next level of $2530/$2550.
It is good to buy on dips around $2509-10 with SL around $2499 for a TP of $2530.
