Gold hits three –month high on weak US dollar,buy on dips
Gold continuing its 10th day of rally longest since 2011 and hits three-month high. The main reason for jump is due to weakness of US dollar. US dollar index is trading weak for the past 12 days and closed below neck line support at 92.35. It is currently trading around 92.18. The yellow metal jumped till $1307.50 and is currently trading around $1306.80.
US 10 year declining after hitting high of 2.50% on Dec 21st 2017 and is currently trading at 2.40%. The decline in bond yields also supporting gold price.
On the higher side, gold is facing strong resistance at $1310 (61.8% retracement) and any break above will take the yellow metal till $1320/$1331. The yellow metal has closed above $1300 for two consecutive days and this confirms bullish continuation.
The near term support is at $1294 (7- day MA) and any violation below will drag the metal to next level till $1287 (100- day MA) /$1275 (50- day MA)/$1272 (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 $1298 with SL around $1287 for the TP of $1313/$1320.
US 10 year declining after hitting high of 2.50% on Dec 21st 2017 and is currently trading at 2.40%. The decline in bond yields also supporting gold price.
On the higher side, gold is facing strong resistance at $1310 (61.8% retracement) and any break above will take the yellow metal till $1320/$1331. The yellow metal has closed above $1300 for two consecutive days and this confirms bullish continuation.
The near term support is at $1294 (7- day MA) and any violation below will drag the metal to next level till $1287 (100- day MA) /$1275 (50- day MA)/$1272 (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 $1298 with SL around $1287 for the TP of $1313/$1320.
