Gold slips below $1090 handle, good to buy at dips

Gold erased the previous gains and edged lower on Wednesday, heading for a third straight day in loss as investors flocked out of the metal amid the ongoing commodity sell-off and a stronger dollar chipped away demand for the metal.
 

• Still, the metal has risen almost 3% since the beginning of the year and snatched a wide weekly gain last week.
   
• Moreover, Asian shares traded broadly higher on Wednesday morning as investors build confidence after positive trade data from China. The trade surplus expanded from 343.10 billion Yuan in November to 382.05 billion Yuan in December.
   
• To the down side, support levels are seen at $1082, $1076 and $1072 levels.
   
• Initial resistance levels are seen at $ 1097, $1102 and $1112 levels.
   
• We prefer to take long position in XAUUSD, Entry @ $1078-1080, stop loss @ $1072 and take profit at $ 1097 levels.