U.S new home construction has fallen in Apr for the third time in four months. U.S housing starts came at 1.172M compared to forecast of 1.26M. US dollar index trading weak and broken major support 98.50 and declined till 97.91 at the time of writing.
U.S 10 year bond yield declines sharply after hitting 6 – week high at 2.41% and is currently trading around 2.33% on account of weak U.S economic data.
In the the yellow metal broken 100- and is facing resistance at 200- day MA.
Technically gold is facing strong support at $1214 (May 9th 2017 low) and any break below will drag the precious metal till $1208 ( of $1122 and $1295)/$1200/$1195. It should break below $1195 (Mar 10th 2017 low) for further weakness.
On the higher side, near term resistance is around $1245 (200- day MA) and any break above targets $1255 (50% fibo)/$1260.
It is good to buy on dips around $1230 with SL around $1220 for the TP of $1245/$1255.