Gold trades higher on weak U.S dollar, good to buy on dips
•Gold trading higher continuously for second consecutive week after hitting low of $1204. The yellow metal has broken major resistance at $1248 (100 –day MA) and is currently trading around $1253.98.
•Euro surged to two year high after ECB is preparing to withdraw stimulus down the road. Dollar is broadly lower after market is losing hope on trump.
•Technically gold has closed well above 100- day MA ($1248) on Friday and closed at $1254.98.
•Gold’s near term support is around $1237 (21- day EMA) and break below will drag the commodity down till $1230 (10- day MA)/$1224 (61.8% retracement of $1204.98 and $1257.23). The yellow metal should break below $1195 for major trend reversal.
•On the higher side, in the daily chart minor resistance is around $1262 (61.85 retracement of $1375 and $112) and any break above will take the commodity till $1274/$1280/$1296.
It is good to buy on dips around $1248-$1250 with SL around $1237 for the TP of $1275/$1280.
•Euro surged to two year high after ECB is preparing to withdraw stimulus down the road. Dollar is broadly lower after market is losing hope on trump.
•Technically gold has closed well above 100- day MA ($1248) on Friday and closed at $1254.98.
•Gold’s near term support is around $1237 (21- day EMA) and break below will drag the commodity down till $1230 (10- day MA)/$1224 (61.8% retracement of $1204.98 and $1257.23). The yellow metal should break below $1195 for major trend reversal.
•On the higher side, in the daily chart minor resistance is around $1262 (61.85 retracement of $1375 and $112) and any break above will take the commodity till $1274/$1280/$1296.
It is good to buy on dips around $1248-$1250 with SL around $1237 for the TP of $1275/$1280.
