Gold trades firm near one month high, good to buy on dips
• Gold prices has recovered almost $40 from the low of $1226.75 made previous week and is trading steadily at one month high on political uncertainty in U.S and is currently trading around $1265.
• The upside is limited for gold as the second rate hike of the year at the Jun FOMC is almost fully priced and also EURO came under pressure after media reported that Greece may forego its next bailout payment if it fails to meet existing debt repayment due in July.
• In the daily chart the yellow metal has formed golden cross over 50-day moving average rose above its 200-day moving average and this confirms bullish signal. Any minor weakness can be seen if it closes below 200 – day MA.
• Technically gold is facing strong support at $1245 (200- day MA) and any break below will drag the precious metal till $1240 (89 – EMA)/$1233 (61.8% retracement of $1195 and $1264.93). It should break below $1195 (Mar 10th 2017 low) for further weakness.
• On the higher side, any close above $1274 (161.8% retracement of $11263.89 and $1247) will take the commodity to next level till $1278 (61.8% retracement of $1375 and $1122)/$1295.
It is good to buy on dips around $1260 with SL around $1253 for the TP of /$1278.
• The upside is limited for gold as the second rate hike of the year at the Jun FOMC is almost fully priced and also EURO came under pressure after media reported that Greece may forego its next bailout payment if it fails to meet existing debt repayment due in July.
• In the daily chart the yellow metal has formed golden cross over 50-day moving average rose above its 200-day moving average and this confirms bullish signal. Any minor weakness can be seen if it closes below 200 – day MA.
• Technically gold is facing strong support at $1245 (200- day MA) and any break below will drag the precious metal till $1240 (89 – EMA)/$1233 (61.8% retracement of $1195 and $1264.93). It should break below $1195 (Mar 10th 2017 low) for further weakness.
• On the higher side, any close above $1274 (161.8% retracement of $11263.89 and $1247) will take the commodity to next level till $1278 (61.8% retracement of $1375 and $1122)/$1295.
It is good to buy on dips around $1260 with SL around $1253 for the TP of /$1278.