Gold trades higher on weak US dollar, good to buy on dips
Gold jumped almost $15 from yesterday’s low of $1281 and hits 4- week high highest level since Dec 1st 2017. The main reason for jump is due to weakness of US dollar. US dollar index has broken trend line support at 93 and declined till 92.72 at the time of writing and is currently trading around 92.72. The yellow metal jumped till $1292.48 and is currently trading around $1291.50.
US Pending home sales rose slightly by 0.2% in November compared to 3.5% increase in Oct and index of pending home sales was 109.5 in Nov. US Conference board consumer confidence came at slightly less at 122.1 in Dec compared to forecast of 128.20 level but is still strong. Dollar declined slightly after mixed set of economic data.
On the higher side, gold is facing strong resistance at $1296 (50% retracement) and any break above will take the yellow metal till $1300. Any close above $1300 will take the gold to next level till $1324 (78.6% fibo)/$1357 (Sep 2017 high)/$1375.
The near term major support is at $1285 (100- day MA) and any violation below will drag the metal to next level till $1280/$1274 (50- day MA)/$1267 (daily Kijun-Sen). Minor weakness below $1260. Any break below $1260 will drag the gold till $1243/$1236 (Dec 12th 2017 low).
It is good to buy on dips around $1285 with SL around $1274 for the TP of $1300/$1320.
US Pending home sales rose slightly by 0.2% in November compared to 3.5% increase in Oct and index of pending home sales was 109.5 in Nov. US Conference board consumer confidence came at slightly less at 122.1 in Dec compared to forecast of 128.20 level but is still strong. Dollar declined slightly after mixed set of economic data.
On the higher side, gold is facing strong resistance at $1296 (50% retracement) and any break above will take the yellow metal till $1300. Any close above $1300 will take the gold to next level till $1324 (78.6% fibo)/$1357 (Sep 2017 high)/$1375.
The near term major support is at $1285 (100- day MA) and any violation below will drag the metal to next level till $1280/$1274 (50- day MA)/$1267 (daily Kijun-Sen). Minor weakness below $1260. Any break below $1260 will drag the gold till $1243/$1236 (Dec 12th 2017 low).
It is good to buy on dips around $1285 with SL around $1274 for the TP of $1300/$1320.
