US Dollar index hits lowest level since Nov 2016 on Trump turmoil and shown a minor recovery.
U.S 10 year bond yield shown a minor recovery after declining 11.4 basis point yesterday largest one day decline since Jun 27 2016 amid trump controversy. It has closed around 2.23%.
In the the yellow metal has taken support near 200- day MA and jumped slightly from that level.
Technically gold is facing strong support at $1245 (200- day MA) and any break below will drag the precious metal till $1239 (89 – ). It should break below $1195 (Mar 10th 2017 low) for further weakness.
On the higher side, near term resistance is around $1265 ( of $1295 and 1214) and any break above targets $1278 ( of $1375 and $1122)/$1295.
It is good to buy on dips around $1248-$1250 with SL around $1239 for the TP of $1265/$1278.