Gold hovering around major support at $1102, advisable to buy on dips

Gold is elevated for another session, enjoying falling stocks around the globe.

• The biggest worry now is China and its slowing economy, along with slashed global growth projections.
   
• The global economy is forecast to grow some 2.9% this year, the World Bank predicted on Wednesday, which is lower than the earlier forecast of 3.3%.
   
• The precious metal is benefiting also from a falling US dollar index that makes it cheaper in other currencies, boosting its appeal.
   
• However, the outlook for the US currency remains bullish, as the Federal Reserve (Fed) is expected to continue moving its interest rates higher over this year, while the pace of increases will be data dependent. A rate hike is positive for the greenback, but weighs negatively on gold as anon-interest bearing asset.

• To the upside, the strong resistance can be seen at $1112, a break above will take the pair towards next resistance level at $1122 level.

• To the downside immediate support can be seen at $1102 levels, a break below will open gates towards $1092 levels.

We prefer to take long position in XAUUSD at $1100-$1102,  Stop loss at $1092 and target at $ 1121.